Foreigners Switch to 'Saja' in 4 Weeks... Bought Battery Stocks

[Asia Economy Reporter Song Hwajeong] Foreign investors have returned to net buying in the domestic stock market after 4 weeks.

According to the Korea Exchange on the 30th, foreign investors net purchased about 353.7 billion KRW in the domestic stock market during the week from the 24th to the 28th. They bought 295.3 billion KRW in the KOSPI market and 58.2 billion KRW in the KOSDAQ market, respectively.

The stock most purchased by foreign investors last week was Samsung SDI. Foreign investors net bought Samsung SDI worth 209 billion KRW last week. Next, they bought SK Hynix for 120.3 billion KRW. In addition, they net purchased LG Chem (84.6 billion KRW), Seegene (67.6 billion KRW), Shinpung Pharmaceutical (51.6 billion KRW), Fila Holdings (39.7 billion KRW), Naver (NAVER·36.2 billion KRW), Hyundai Glovis (27 billion KRW), Alteogen (25.5 billion KRW), and Celltrion (23.9 billion KRW).

The stock most sold by foreign investors last week was Samsung Electronics. Foreign investors net sold Samsung Electronics worth 58 billion KRW last week. They also sold Jinwon Life Science for 51.3 billion KRW. Other stocks in the top net sales by foreign investors included POSCO (POSCO·51.2 billion KRW), Samsung Electronics Preferred Shares (49.1 billion KRW), Shinhan Financial Group (40.2 billion KRW), Dreamtech (24.1 billion KRW), Soulbrain (23.6 billion KRW), S-Oil (21.6 billion KRW), Korea Technology Group (17.8 billion KRW), and KT&G (17.4 billion KRW).

Despite growing concerns over the resurgence of COVID-19, liquidity-driven market conditions are expected to continue. Haen Daehoon, a researcher at SK Securities, said, "With ongoing caution about the possible escalation to social distancing level 3, KOSPI trading volume has sharply decreased. While daily trading volume approached 18.7 trillion KRW on the 11th, the average KOSPI trading volume last week dropped to 12.8 trillion KRW." He added, "However, KOSDAQ trading volume is still on the rise and has surpassed KOSPI trading volume, which confirms abundant liquidity and the strength of individual investors' funds."

Based on abundant liquidity, the inflow of individual funds is expected to continue. Researcher Ha said, "Individual investment funds have been directed toward leading stocks. Even in August, when concerns about the second wave of COVID-19 emerged, individual funds focused on leading sectors such as semiconductors, healthcare, and chemicals (batteries), as well as the automobile sector, which showed improved earnings. Although there may be caution regarding macroeconomic indicators at the end and beginning of the month, since sensitivity to economic indicators has decreased, a liquidity-driven market centered on leading stocks is expected to continue."