Foreigners, 'Palja' for 3 Consecutive Weeks... Buying Samsung Electronics, Selling SK Hynix

[Asia Economy Reporter Song Hwajeong] Foreign investors continued their selling trend in the domestic stock market for three consecutive weeks.

According to the Korea Exchange on the 23rd, foreign investors net sold approximately 408.1 billion KRW in the domestic stock market during the week from the 17th to the 21st. They sold 274 billion KRW in the KOSPI market and 134.3 billion KRW in the KOSDAQ market, respectively.

The stock most purchased by foreign investors last week was Samsung Electronics. Foreign investors net bought Samsung Electronics for 85.9 billion KRW last week. This was followed by Naver (NAVER), which they bought for 70 billion KRW. Other net purchases included SK Telecom (63.4 billion KRW), LG Electronics (58.8 billion KRW), Kakao (36.7 billion KRW), Alteogen (31.2 billion KRW), Samsung Biologics (24.3 billion KRW), LG Household & Health Care (20.3 billion KRW), Mirae Asset Daewoo (20 billion KRW), and Ace Tech (18.6 billion KRW).

The stock most sold by foreign investors last week was SK Hynix. Foreign investors net sold SK Hynix for 245.8 billion KRW last week. This was followed by Seegene, which they sold for 130 billion KRW. Other top net sales included Hyundai Motor (127.2 billion KRW), NCSoft (96.8 billion KRW), LG Chem (80 billion KRW), Samsung Electronics Preferred Shares (59.5 billion KRW), Dreamtech (40.1 billion KRW), Amorepacific (34.7 billion KRW), Hana Financial Group (31.8 billion KRW), and SK Innovation (28.1 billion KRW).

It is expected that foreign investors' futures positions will impact cash flow in the stock market. Roh Donggil, a researcher at NH Investment & Securities, said, "On the 20th, the KOSPI and KOSDAQ closed down 3.7% and 3.4%, respectively, as foreign investors' net selling of cash and futures and financial investors' arbitrage selling combined to widen the stock market's decline," adding, "Foreign investors sold more than 11,000 contracts intraday but reduced the scale of sales near the closing price." Researcher Roh added, "Growth stocks, which occupy the top market capitalization in the domestic stock market, have recently shown signs of slowing, leading to a reduction in foreign investors' futures long positions. The stock market is likely to undergo a period of adjustment until confirmation of additional easing monetary policy by the U.S. Federal Reserve (Fed) and further U.S. stimulus measures."