Foreigners Switch 'Fortunes' in Just One Week... Buy Samsung Electronics, Sell Samsung SDI

[Asia Economy Reporter Song Hwajeong] Foreign investors turned to net selling within a week.

According to the Korea Exchange on the 16th, foreign investors net sold about 315.2 billion KRW in the domestic stock market during the week from the 10th to the 14th. They sold 239.6 billion KRW in the KOSPI market and 75.1 billion KRW in the KOSDAQ market, respectively.

The stock that foreign investors bought the most last week was Samsung Electronics. Foreign investors net purchased Samsung Electronics by 122.2 billion KRW last week, making it the most bought stock for two consecutive weeks. Following that, they bought Kakao worth 81 billion KRW. Other net purchases included SK Hynix (78.4 billion KRW), LG Uplus (51.1 billion KRW), Samsung Electro-Mechanics (50.7 billion KRW), LG Chem (35.3 billion KRW), Hanjin KAL (35.3 billion KRW), Seoul Semiconductor (22.1 billion KRW), NCSoft (21.8 billion KRW), and LG (20.1 billion KRW).

The stock that foreign investors sold the most last week was Samsung SDI. Foreign investors net sold Samsung SDI by 83 billion KRW last week. Next, they sold SK Innovation worth 58.9 billion KRW. Other top net sold stocks by foreign investors included Celltrion (39.8 billion KRW), KB Financial Group (37.9 billion KRW), Shinhan Financial Group (37.7 billion KRW), HL Biopharma (35.7 billion KRW), NAVER (34.3 billion KRW), Amorepacific (30 billion KRW), Korea Electric Power Corporation (28.6 billion KRW), and Samsung Electronics Preferred Shares (27.7 billion KRW).

The stock market this week is expected to show a gradual rise amid fluctuations. Labor Gil, a researcher at NH Investment & Securities, said, "Although the KOSPI may experience fluctuations due to the continued spread of the novel coronavirus infection (COVID-19), it will maintain an upward trend due to the global economic recovery and upward revisions in earnings estimates for the semiconductor sector." Researcher Noh added, "In the case of IT, the existing leading sector, the sentiment burden due to the market capitalization weight cap on Samsung Electronics has been partially eased, so it will maintain its leadership. Globally, as foreign investors continue to flow funds into IT, net purchases of Korean IT, which has differentiated earnings momentum, will continue."