Foreigners Buy 'Saja' for 2 Consecutive Weeks... Kakao Most Purchased

[Asia Economy Reporter Song Hwajeong] Foreign investors showed buying momentum in the domestic stock market for two consecutive weeks.

According to the Korea Exchange on the 11th, foreign investors net purchased about 984.3 billion KRW in the domestic stock market during the week from the 5th to the 9th. They bought 1.0309 trillion KRW in the KOSPI market, showing a buying trend of over 1 trillion KRW for two consecutive weeks. On the other hand, they sold 46.6 billion KRW in the KOSDAQ market.

The stock most purchased by foreign investors last week was Kakao. Foreign investors net bought 299.7 billion KRW worth of Kakao last week. This was followed by Woori Financial Group, which they bought for 140 billion KRW. Other net purchases included Samsung Electronics (139.1 billion KRW), SK Hynix (76.2 billion KRW), NCSoft (72.7 billion KRW), SK Telecom (72.0 billion KRW), DL E&C (58.2 billion KRW), GS Construction (51.9 billion KRW), Shinhan Financial Group (44.7 billion KRW), and POSCO (31.3 billion KRW).

The stock most sold by foreign investors last week was Samsung SDI. Foreign investors net sold 107.3 billion KRW worth of Samsung SDI last week. They also sold Samsung Electronics Preferred shares for 91.0 billion KRW. Other top net sales included Kia (81.7 billion KRW), Douzone Bizon (50.6 billion KRW), Hyundai Motor (45.5 billion KRW), Wonik IPS (31.8 billion KRW), Hyundai Mobis (27.4 billion KRW), Big Hit (25.7 billion KRW), Com2uS (23.6 billion KRW), and SK Innovation (22.7 billion KRW).

Due to the inflow of foreign capital, the KOSPI is expected to continue its upward trend. Soeun Ahn, a researcher at IBK Investment & Securities, said, "Foreign capital has entered significantly for the first time in five months, leading the rise of the KOSPI," and analyzed, "This change in supply and demand reflects expectations for improvement in the IT-centered manufacturing economy and trade." Foreign capital has also started to flow into the Taiwanese stock market, which, like Korea, has a high proportion of IT manufacturing and exports. Researcher Ahn added, "Considering the economic trends in the U.S., which is important for the IT manufacturing economy, the relative advantage of the Korean and Taiwanese stock markets can continue," and "Although actual U.S. consumer demand is still weak due to the impact of COVID-19, a full recovery can be expected starting in April when the effects of the $1.9 trillion stimulus package become visible."