Foreigners Switch to 'Lion' in Just 3 Weeks... Samsung Electronics Most Held

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

According to the Korea Exchange on the 4th, foreign investors net purchased approximately 1.3038 trillion KRW in the domestic stock market during the week from the 29th of last month to the 2nd of this month. They bought 1.2398 trillion KRW in the KOSPI market and 63.9 billion KRW in the KOSDAQ market, respectively.

The stock most purchased by foreign investors last week was Samsung Electronics. Foreign investors net bought Samsung Electronics worth 887.9 billion KRW last week. This was followed by SK Hynix, which they purchased for 376.8 billion KRW. Other stocks net purchased included Celltrion (203.1 billion KRW), NCSoft (79.2 billion KRW), Kia Motors (77.1 billion KRW), Hyundai Motor (64.5 billion KRW), SK Telecom (64.1 billion KRW), KB Financial Group (59.0 billion KRW), LG Household & Health Care (54.2 billion KRW), and Samsung Biologics (31.3 billion KRW).

The stock most sold by foreign investors last week was Samsung Electronics Preferred shares. Foreign investors net sold Samsung Electronics Preferred shares worth 119.3 billion KRW last week. This was followed by Naver, which they sold for 72.0 billion KRW. Other stocks among the top net sales by foreign investors included Hyundai Mobis (63.1 billion KRW), SK Innovation (46.5 billion KRW), HMM (46.2 billion KRW), SK Biopharm (46.0 billion KRW), Hyundai Glovis (38.8 billion KRW), Korean Air (32.8 billion KRW), Kumho Petrochemical (32.5 billion KRW), and SK Bioscience (30.8 billion KRW).

There is an opinion that a change in perspective on IT is necessary for foreign investors to switch to net buying. The net buying trend of foreign investors in Korea shows a pattern similar to program trading (including non-arbitrage) trajectories and IT supply-demand trajectories. Labor Gil, a researcher at NH Investment & Securities, said, "The IT sector's weight within the KOSPI 200 or the Morgan Stanley Capital International (MSCI) Korea index, which influences foreign investors' basket trading, is absolutely crucial for a shift in foreign capital inflow across the stock market. Therefore, a change in perspective on IT is necessary." He added, "After the convergence of returns between global growth and value stocks, the resurgence of IT in the fundamental market phase is expected, and the timing of the domestic foreign investors' switch to net buying will likely be similar."