Foreigners, which stock did they keep buying all month even when pulling out of KOSPI?

Foreigners Net Buy LG Energy Solution for 21 Trading Days from Late July
Stock Price Rises 21% During Period
Brokerage Firms Also Positive on Future Outlook

[Asia Economy Reporter Kwon Jae-hee] Despite adverse factors affecting foreign investors' supply and demand in the Korean stock market, such as recent exchange rate hitting new highs, liquidity reduction, and worsening corporate earnings, there is a stock that foreign investors have consistently accumulated throughout the month. That stock is LG Energy Solution. Foreign investors have been net buyers of LG Energy Solution every single day during the past month (July 24 to August 23).

According to the Korea Exchange as of 9:19 AM on the 24th, LG Energy Solution was trading at 450,500 KRW, up 1.24% from the previous trading day. Over the past month, LG Energy Solution’s stock price has steadily risen from a low of 371,000 KRW on July 25. This period coincides with the time foreign investors were net buyers, during which LG Energy Solution’s stock price increased by approximately 21%. From July 24 to August 23, spanning a total of 21 trading days, foreign investors purchased LG Energy Solution shares every single day. During this period, foreign investors bought a total of 933.4 billion KRW worth of LG Energy Solution shares.

This is notable because despite the unfavorable conditions for foreign investors to invest in the Korean market, they consistently accumulated LG Energy Solution shares. Since February 24, foreign investors have maintained a net selling position in the KOSPI market. The KOSPI index has fallen from 2,988.77 at the beginning of this year (as of January 3) to around the 2,400 level currently. This decline is due to the won-dollar exchange rate exceeding 1,300 KRW and growing concerns over the slowdown in domestic companies’ earnings. Foreign investors’ shareholding ratio in the KOSPI market was about 37% last year but dropped to around 30% as of August this year. This is the lowest level in 13 years since August 2009.

The securities industry’s outlook on LG Energy Solution is also positive. Park Jin-soo, a researcher at Shin Young Securities, said, "Although the second-quarter earnings fell short of market expectations, from the third quarter onward, profitability is expected to improve due to price increases, capacity expansion, and an increase in order backlog. It is safe to say the bottom has been passed."

Lee Hyun-wook, a researcher at IBK Investment & Securities, also stated, "From the third quarter, the rise in metal prices will be fully reflected in battery prices, improving profitability. Aggressive capacity expansion aligned with the full bloom of the U.S. electric vehicle market, and securing a competitive edge through an independent battery value chain in the U.S. market guarantee stable growth for the coming years."

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