Foreigners Sell for 2 Consecutive Weeks... Selling More KOSDAQ Than KOSPI

[Asia Economy Reporter Song Hwajeong] Foreign investors continued their selling streak in the domestic stock market for two consecutive weeks. The selling pressure was stronger in the KOSDAQ than in the KOSPI.

According to the Korea Exchange on the 13th, foreign investors net sold approximately 472.2 billion KRW in the domestic stock market during the week from the 7th to the 11th. They sold 167.8 billion KRW in the KOSPI market and 304.5 billion KRW in the KOSDAQ market.

The stock most purchased by foreign investors last week was Samsung Electronics. Foreign investors net bought Samsung Electronics for 686.6 billion KRW last week. This was followed by SK Hynix, which they bought for 118.4 billion KRW. Other net purchases included LG Household & Health Care (52.1 billion KRW), LG Display (52.0 billion KRW), Shinpung Pharmaceutical (44.4 billion KRW), LG Innotek (41.8 billion KRW), Samsung Electro-Mechanics (36.4 billion KRW), Lotte Chemical (34.9 billion KRW), Genexine (27.6 billion KRW), and CJ CheilJedang (20.5 billion KRW).

The stock most sold by foreign investors last week was LG Chem. Foreign investors net sold LG Chem for 192.0 billion KRW last week. This was followed by Shinhan Financial Group, which they sold for 174.0 billion KRW. Other top net sales included Naver (131.5 billion KRW), Celltrion (102.6 billion KRW), POSCO (52.3 billion KRW), Green Cross (49.5 billion KRW), Kakao (47.4 billion KRW), NCSoft (42.8 billion KRW), Korea Financial Group (42.2 billion KRW), and Kakao Games (38.4 billion KRW).

As foreign investors moved to buy IT stocks such as Samsung Electronics, the selling pressure somewhat eased. Roh Donggil, a researcher at NH Investment & Securities, said, "One of the characteristics observed in the September simultaneous expiration was the foreign investors' KOSPI200 futures roll-over," adding, "Foreign investors are conducting a buy roll-over of about 25,000 contracts, raising expectations for continued net buying of futures." Roh said, "The stabilization of the basis due to the sustained foreign buying position is acting as a factor limiting volatility in the stock market," and added, "The foreign investors' net buying of KOSPI200 futures is also likely to serve as a substitute for Samsung Electronics. Amid fluctuations in U.S. tech stocks, the foreign investors' net buying of KOSPI200 futures can be seen as a sign of confidence in domestic IT investment."