Foreigners Sell 'Palja' for 3 Consecutive Weeks... LG Chem Accident, Selling Kakao

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

According to the Korea Exchange on the 27th, foreign investors net sold about 671.8 billion KRW in the domestic stock market during the week from the 21st to the 25th. Foreign investors sold 401.7 billion KRW in the KOSPI market and 270.2 billion KRW in the KOSDAQ market, respectively.

The stock most purchased by foreign investors last week was LG Chem. Foreign investors net bought LG Chem worth 181.2 billion KRW last week. This was followed by SK Innovation with a net purchase of 174.9 billion KRW. Other net purchases included Kia (79.8 billion KRW), SK IE Technology (53.5 billion KRW), LG Household & Health Care (45.0 billion KRW), Kiwoom Securities (43.9 billion KRW), DB HiTek (42.7 billion KRW), LG Electronics (39.1 billion KRW), Pan Ocean (32.6 billion KRW), and Hyundai Mobis (32.5 billion KRW).

The stock most sold by foreign investors last week was Kakao. Foreign investors net sold Kakao worth 589.9 billion KRW last week. This was followed by Samsung Electronics with sales of 487.2 billion KRW. Other top net sales included Samsung Electronics Preferred (65.1 billion KRW), KT&G (60.0 billion KRW), Seegene (53.7 billion KRW), Naturecell (37.3 billion KRW), Doosan Infracore (37.3 billion KRW), Korea Electric Power Corporation (37.0 billion KRW), HL Biopharma (36.0 billion KRW), and Hanon Systems (29.2 billion KRW).

As the KOSPI continues to hit record highs day after day, a gradual upward trend is expected to continue. Kim Younghwan, a researcher at NH Investment & Securities, said, "Favorable domestic factors such as strong exports and reopening are positive for the stock market," adding, "Recently, the stock market has maintained a price-earnings ratio (PER) level of 11.9 to 12.0 times and is showing a gradual upward trend in line with upward earnings revisions, and this trend is likely to continue." Kim also noted, "However, June U.S. employment data will be the most important indicator in the last week of June, as it affects not only the U.S. economy but also the monetary policy of the U.S. Federal Reserve (Fed)."