Pension Funds' Net Buying in the First Week of May, First Time in 7 Months

[Asia Economy Reporter Park Soyeon] In May, a net buying movement by the 'big players' in the domestic stock market, the pension funds, was observed in the Korea Composite Stock Price Index (KOSPI) market. Pension funds have been continuously selling domestic stocks since June last year.

According to the financial investment industry on the 9th, pension funds net bought 55.3 billion KRW worth of stocks in the KOSPI market from the 3rd to the 7th.

Although the amount is not large compared to the amount they have net sold so far, they net bought on 3 out of 4 trading days, with only one day of net selling.

This is the first weekly net buying since the first week of October (40.2 billion KRW), seven months ago.

In January this year, pension funds net sold an average of 400 billion KRW per day. In February, this decreased to 240 billion KRW, and in March and April, it further declined to the 100 billion KRW range each month.

In particular, from the 28th of last month, the daily net selling amount dropped to between 60 billion and 80 billion KRW, and in May, it turned to net buying.

Pension funds include the National Pension Service along with the Military Mutual Aid Association, Teachers' Mutual Aid Association, and Korea Post. Among these, the National Pension Service holds an absolute majority.