[Click eStock] "International Market Uptrend... Foreigners Continue Net Buying of Domestic Stocks"

"Possibility of 탈jungguk Capital Inflow into Korean Stock Market
...Positive Impact on Semiconductor and AI Cycles"

Amid an unexpectedly strong recovery in global economic momentum centered on the United States, an analysis suggests that the foreigners' net buying trend in the domestic stock market will also continue.

On the 13th, Park Sang-hyun, a researcher at Hi Investment & Securities, said, "The domestic and international environments are similarly unfolding as they did in January last year, when the net foreign stock purchases exceeded 6 trillion won."

Researcher Park explained, "Despite controversies surrounding the timing of interest rate cuts, the U.S. economy is maintaining a stronger-than-expected momentum, creating a favorable global economic environment," adding, "If the European Central Bank (ECB) implements early interest rate cuts, there is potential for the Eurozone's economic recovery momentum to strengthen further."

Concerns about the Chinese economy are growing. Last month, China's consumer price index fell by -0.8% compared to the same period last year, marking the largest decline in 14 years. Researcher Park noted, "Although the Chinese government has shown a strong commitment to stimulus measures against stock market panic, it is insufficient to alleviate overall concerns," and he evaluated, "The Chinese government's policy resolve will be put to the test after the Spring Festival (Chinese New Year)."

On the other hand, the domestic stock market has seen a net foreign stock buying trend for four consecutive months. From the 1st to the 8th of this month, the net foreign stock purchases amounted to 4.4473 trillion won based on the Korea Exchange, the highest since 6.3704 trillion won in January last year. Researcher Park said, "We expect the net foreign buying to continue for the time being," adding, "capital outflows from China could flow into the Korean stock market, and the stronger-than-expected global economic momentum will also act as a factor reinforcing global investors' preference for risk assets."

The improvement in the semiconductor industry cycle is also expected to support the sustained net foreign buying in the domestic stock market. Expectations for the artificial intelligence (AI) cycle further bolster the additional improvement in the domestic semiconductor industry. Researcher Park said, "News that Sam Altman, CEO of OpenAI, who is pursuing the development of proprietary AI chips, is raising capital in the range of 5 to 7 trillion dollars could stimulate expectations for increased investment," adding, "This capital raising scale is larger than the combined market capitalization of Nvidia (1.78 trillion dollars), AMD (278.6 billion dollars), TSMC (531.4 billion dollars), Samsung Electronics (370 billion dollars), and Intel (183.1 billion dollars), which totals 3.1431 trillion dollars."

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