Foreigners Switch 'Fate' in Just One Week... Massive Selling of KOSPI Large-Cap Stocks

[Asia Economy Reporter Song Hwajeong] Foreign investors have turned to net selling in the domestic stock market after a week.

According to the Korea Exchange on the 6th, foreign investors net sold about 2.119 trillion KRW in the domestic stock market during the week from the 31st of last month to the 4th of this month. They sold 2.3779 trillion KRW in the KOSPI market but bought 258.8 billion KRW in the KOSDAQ market.

The stock most purchased by foreign investors last week was Shinpung Pharmaceutical. Foreign investors net bought Shinpung Pharmaceutical worth 231.4 billion KRW last week. Next, they bought Seegene for 172.6 billion KRW. In addition, they net purchased Alteogen (139.3 billion KRW), SK Telecom (121.4 billion KRW), TCK (54.6 billion KRW), LG Innotek (40.6 billion KRW), Genexine (24.0 billion KRW), Green Cross (20.5 billion KRW), Samsung Fire & Marine Insurance (13.2 billion KRW), and Hansol Chemical (12.0 billion KRW).

The stock most sold by foreign investors last week was Samsung Electronics. Foreign investors net sold Samsung Electronics worth 572.3 billion KRW last week. They also sold Samsung Electronics Preferred shares for 206.6 billion KRW. Other top net sold stocks by foreign investors included LG Chem (176.4 billion KRW), SK Hynix (150.0 billion KRW), Hyundai Motor (142.1 billion KRW), Celltrion (130.0 billion KRW), Kakao (103.7 billion KRW), Shinhan Financial Group (83.3 billion KRW), Samsung Biologics (76.5 billion KRW), and Naver (NAVER·74.9 billion KRW).

It is suggested that for foreign investors to return, the development of COVID-19 treatments or vaccines and the recovery of Korean exports are necessary. Kim Yonggu, a researcher at Samsung Securities, analyzed, "Despite the cyclical recovery of the global economy supported by aggressive policy stimulus and the shift to a weaker strong dollar, global investment sentiment toward emerging markets and Korea remains cold," adding, "For a change in perspective, the development of COVID-19 treatments and vaccines, the resumption of China's restocking, and the recovery of Korean exports need to be prerequisites." Researcher Kim added, "Until the revival of foreign investors' love call to the domestic stock market, the market trend will continue to favor momentum alpha plays led by individual supply and demand, earnings, policies, and individual supply and demand."