Foreigners, 'Lion' for 3 Consecutive Weeks... LG Chem Accident, Samsung SDI Sold

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

According to the Korea Exchange on the 18th, foreign investors net purchased about 754.5 billion KRW in the domestic stock market during the week from the 12th to the 16th. They bought 760 billion KRW in the KOSPI market while selling 5.5 billion KRW in the KOSDAQ market.

The stock most purchased by foreign investors last week was LG Chem. Foreign investors net bought LG Chem worth 232.4 billion KRW last week. This was followed by SK Telecom with 157.1 billion KRW. Other net purchases included POSCO (118.7 billion KRW), LG Electronics (106.6 billion KRW), Kia (81.9 billion KRW), Samsung Biologics (70 billion KRW), Samsung Electronics (67.7 billion KRW), SK Innovation (47.7 billion KRW), DL E&C (47.2 billion KRW), and Hyosung TNC (43.2 billion KRW).

The stock most sold by foreign investors last week was Samsung SDI. Foreign investors net sold Samsung SDI worth 141.1 billion KRW last week. This was followed by SK Hynix with 114.1 billion KRW sold. Other top net sales included Hyundai Mobis (79.6 billion KRW), Samsung Electronics Preferred (52.9 billion KRW), LG Display (35 billion KRW), Hotel Shilla (33 billion KRW), Douzone Bizon (30.4 billion KRW), Wonik IPS (29.3 billion KRW), SK (25.1 billion KRW), and Lotte Chemical (23.1 billion KRW).

Foreign investors' supply and demand are expected to have a favorable effect on the direction of the domestic stock market for the time being. Roh Nogil, a researcher at NH Investment & Securities, said, "Foreign investors expanded their exposure to the domestic stock market by net buying KOSPI on 12 out of the last 15 trading days until the 15th," adding, "During this period, foreign investors' net purchases in KOSPI amounted to 3.1 trillion KRW, concentrated in sectors such as electrical and electronics (1 trillion KRW), finance (500 billion KRW), telecommunications (400 billion KRW), and pharmaceuticals (300 billion KRW)." Researcher Roh added, "The change in foreign investors' perception of domestic IT has had an important impact on the continuous net buying. Considering the high proportion of program net buying and the expansion of KOSPI 200 futures long positions, the direction of foreign investors' supply and demand is expected to be favorable for the domestic stock market for the time being."