Foreigners Turn to 'Palja' in Just One Week

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

According to the Korea Exchange on the 27th, foreign investors sold a net amount of approximately 513 billion KRW in the domestic stock market during the week from the 21st to the 25th. They sold 428.1 billion KRW in the KOSPI market and 85.2 billion KRW in the KOSDAQ market, respectively.

The stock most purchased by foreign investors last week was LG Chem. Foreign investors net bought LG Chem for 251.5 billion KRW last week. Following that, they purchased SK Hynix for 225.3 billion KRW. Other stocks net bought included Celltrion (108 billion KRW), Naver (NAVER·96.5 billion KRW), Hanwha Solutions (64.4 billion KRW), Celltrion Healthcare (45.3 billion KRW), KB Financial Group (39.1 billion KRW), Genexine (35.1 billion KRW), LG Electronics (34.9 billion KRW), and Netmarble (21.2 billion KRW).

The stock most sold by foreign investors last week was Samsung Electronics. Foreign investors net sold Samsung Electronics for 197.5 billion KRW last week. Hyundai Motor followed with 127.1 billion KRW sold. Other stocks in the top foreign net sales included Samsung Electronics Preferred (94.6 billion KRW), POSCO (POSCO·77.2 billion KRW), Kia Motors (60.4 billion KRW), Shinhan Financial Group (58.1 billion KRW), Macquarie Infrastructure (38 billion KRW), LG Uplus (36.8 billion KRW), Kakao (36.1 billion KRW), and Mando (31.6 billion KRW).

Foreign investors' futures selling is analyzed as a factor that increases the possibility of a decline in the domestic stock market. Roh Dong-gil, a researcher at NH Investment & Securities, said, "Foreign investors are rapidly reducing their long positions on KOSPI200 futures," adding, "Since the September expiration, foreign investors' cumulative net purchase of KOSPI200 futures stands at -7,591 contracts. Considering rollovers, they still maintain a long position, but the rapid pace of foreign futures selling will act as a factor increasing the short-term downside risk in the domestic stock market."