Foreigners Halt 'Sell-Off Rally' After 4 Weeks... "Expecting Additional Volatility"

Foreigners Net Bought 21.6 Billion KRW in Domestic Stock Market Last Week
KOSPI Faces 5-Week Consecutive Net Selling Rally

[Asia Economy Reporter Ji Yeon-jin] Foreign investors, who sold off more than 6 trillion won worth of domestic stocks last month, have stopped their net selling rally this month.

According to the Korea Exchange on the 10th, foreign investors made net purchases worth 21.6 billion won from the 1st to the 8th of this month. This marks the first net buying reversal in four weeks after net selling 6.1721 trillion won in June.

In the Kospi market, foreign investors continued their selling streak for five consecutive weeks with net sales of about 6.2 billion won this month, but they made net purchases of 27.8 billion won in the Kosdaq market.

During this period, the stock most purchased by foreigners was SK IE Technology (124.4 billion won). This was followed by LG Chem (62.3 billion won), S-Oil (54.7 billion won), NCSoft (51.5 billion won), and SK Telecom (29.8 billion won) in order of net buying.

On the other hand, Samsung Electronics was net sold by 141.1 billion won, and NAVER (-100.7 billion won), Husung (-31 billion won), LG Electronics (-29.1 billion won), and Samsung Heavy Industries (-27 billion won) were also net sold.

Meanwhile, individuals made net purchases worth about 85.8 billion won this month, while institutions made net sales of 205.7 billion won. The Kospi index fell below the 2300 level in the early part of the week but recovered to the 2350 level later due to the foreign investors’ net buying reversal.

Seo Jeong-hoon, a researcher at Samsung Securities, explained, "Concerns over high-intensity tightening have now emerged as recession debates, providing an opportunity for a rebound in the stock market," adding, "This is why growth stocks, which had been under valuation pressure due to high interest rates, rebounded noticeably in the latter part of last week."

However, Seo said, "Since volatility in interest rates and exchange rates has calmed compared to before, the index is expected to continue the process of resolving overselling, but because this is a phase where monetary tightening accompanies an economic recession, the extent of the rebound is likely to be limited," adding, "Growth stocks with weak earnings bases should be mindful that they may be exposed to additional volatility after a short-term rebound."

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