Foreigners, 'Lion' for 3 Consecutive Weeks... Buying KOSPI, Selling KOSDAQ

[Asia Economy Reporter Song Hwajeong] Foreign investors recorded net purchases in the domestic stock market for three consecutive weeks. While foreign investors had mainly focused on buying KOSDAQ stocks, last week they significantly increased their purchases in KOSPI stocks but turned to selling in KOSDAQ.

According to the Korea Exchange on the 10th, foreign investors net purchased about 918.2 billion KRW in the domestic stock market during the week from the 4th to the 8th. They bought 1.2323 trillion KRW worth of stocks in the KOSPI market but sold 314.1 billion KRW in the KOSDAQ market.

The stock most bought by foreign investors last week was LG Chem. Foreign investors net purchased LG Chem worth 364.6 billion KRW last week. This was followed by Hyundai Motor with 263.2 billion KRW. Other net purchases included Kakao (258.8 billion KRW), SK Hynix (248.3 billion KRW), Naver (NAVER·162.7 billion KRW), Doosan Fuel Cell (147.7 billion KRW), Hana Financial Group (128.6 billion KRW), KB Financial Group (91.3 billion KRW), Samsung C&T (88.1 billion KRW), and Samsung Electro-Mechanics (83.1 billion KRW).

The stock most sold by foreign investors last week was Samsung Electronics. Foreign investors net sold Samsung Electronics worth 989.6 billion KRW last week. This was followed by LG Electronics with 423.6 billion KRW sold. Other top net sales included Samsung Electronics Preferred (288.3 billion KRW), Hyundai Mobis (134.7 billion KRW), LG Electronics Preferred (54.7 billion KRW), Kia Motors (46.7 billion KRW), Celltrion (38.0 billion KRW), Oscotec (33.8 billion KRW), SK Innovation (30.3 billion KRW), and Alteogen (28.2 billion KRW).

With the realization of the 'Blue Wave,' where the US Democratic Party controls the White House, the House of Representatives, and now the Senate, expectations for foreign capital inflow are growing. Kim Younghwan, a researcher at NH Investment & Securities, said, "The fiscal expansion policies planned by the US Democratic Party under the Blue Wave will be implemented smoothly," adding, "The Biden administration's expansionary fiscal policy strongly supports global economic recovery and causes a large amount of dollar liquidity to be released into the market. Both dollar weakness and economic recovery suggest that foreign capital will flow into the domestic stock market."