Foreign Investors Net Sell Over 6 Trillion Won in a Month... Precise Hit on 'Negative Factor Stocks'

Foreigners Net Sell Over 2 Trillion Won in Last Week of April
Samsung Electronics Largest Net Sell of 1 Trillion Won
Focused Selling on Osstem Implant and Pearl Abyss

[Asia Economy Reporter Ji Yeon-jin] Foreign investors sold more than 2 trillion won worth of domestic stocks in net terms during the last week of last month. The net selling by foreigners over the past month exceeded 6 trillion won, and more than 13 trillion won of foreign funds have flowed out since the beginning of this year.

According to the Korea Exchange on the 1st, foreigners net sold domestic stocks worth 2.1122 trillion won over the week starting from the 25th. They sold 1.5203 trillion won in the KOSPI market and 452.5 billion won in the KOSDAQ market.

The net selling of domestic stocks by foreigners last month reached 6.1655 trillion won. Nearly half of the 13.7617 trillion won net selling of domestic stocks by foreigners since the beginning of this year was disposed of last month.

As Russia's invasion of Ukraine prolongs, global inflation and supply chain concerns continue, and the U.S. Federal Reserve (Fed) formalized a big step (a 0.5%p hike in the base interest rate at once) in May, risk-averse sentiment has spread. In addition, China's renewed COVID-19 lockdowns accelerated the outflow of foreign funds from emerging markets including South Korea.

Over the past week, foreigners net sold Samsung Electronics the most, amounting to 981.5 billion won. This was followed by NAVER (-235.7 billion won), Samsung Electronics Preferred (-192.7 billion won), Osstem Implant (-192.7 billion won), and Pearl Abyss (-129.5 billion won).

On the other hand, Kia was the most net bought with 252.4 billion won, followed by Celltrion (74.3 billion won), Amorepacific (73.6 billion won), Samsung SDI (73.6 billion won), and LG Energy Solution (67.5 billion won).

Kim Kyung-hoon, a researcher at Daol Investment & Securities, said, "The continuous contraction trend of the domestic economy throughout the first half of this year was expected, but the prolonged uncertainty in various macro environments such as China's COVID control and geopolitical risks, beyond changes in existing monetary policies, has strengthened risk-averse sentiment. If even one of these macro factors is resolved, the current oversold condition of foreigners' supply and demand could improve, but this is more likely to be a temporary phenomenon rather than a trend."

This content was produced with the assistance of AI translation services.