Foreigners, 'Lion' for 3 Consecutive Weeks... 6 Weeks Straight Leading Samsung Electronics Net Buying

[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 2nd, foreign investors net purchased about 65.6 billion KRW in the domestic stock market during the week from the 27th to the 30th of last month. Foreign investors bought 158.1 billion KRW in the KOSPI market but sold 92.5 billion KRW in the KOSDAQ market.

The stock most purchased by foreign investors last week was Samsung Electronics. Foreign investors net bought Samsung Electronics for 134.2 billion KRW last week, marking the sixth consecutive week of being the top buyer of Samsung Electronics. Next, they purchased LG Chem for 86.9 billion KRW. Other net purchases included LG Display (66.2 billion KRW), SK Telecom (42.8 billion KRW), HMM (39.7 billion KRW), SK Hynix (34.1 billion KRW), Samsung Engineering (32.5 billion KRW), Samsung C&T (30.2 billion KRW), Neowiz (28.6 billion KRW), and Kakao Pay (26.0 billion KRW).

The stock most sold by foreign investors last week was Wemade. Foreign investors net sold Wemade for 63.2 billion KRW last week. This was followed by Samsung Electro-Mechanics with net sales of 57.0 billion KRW. Other top net sales included EcoPro (54.6 billion KRW), SK Innovation (52.2 billion KRW), LG Electronics (44.8 billion KRW), Samsung Biologics (38.1 billion KRW), Kakao Games (31.8 billion KRW), Hyosung Advanced Materials (30.7 billion KRW), Hyundai Motor (29.7 billion KRW), and Kia (29.5 billion KRW).

Since November, foreign investors have continued their buying momentum in the domestic stock market, drawing attention to whether this trend will persist. Foreign investors recorded net sales for two consecutive years by selling 26 trillion KRW last year. Their market capitalization holding ratio in the KOSPI shrank from 36.5% to 33.8%. The foreign buying momentum is expected to continue for the time being. Samsung Securities researcher Seo Jeonghoon analyzed, "The foreign demand in the domestic stock market, which has continued since November last year, is likely to persist for a while longer," adding, "Despite concerns about Omicron, the absence of full lockdowns in major countries, the Chinese government's gradual indication of a stimulus policy, and the significantly low valuation burden of the domestic stock market and exchange rate are factors driving this buying momentum." Seo also added, "In particular, expectations for an improvement in the domestic ICT industry's business conditions, including memory semiconductors, can play a significant role in improving overall market demand," noting, "This is because the market capitalization ratio of this sector is considerable and its profit contribution is also high."