Foreigners Net Sell 1.4 Trillion KRW in Domestic Stocks... Samsung Electronics Sold 1.5 Trillion KRW

On the 17th, amid the impact of a sharp decline in global stock markets, the KOSPI index fell below the 2400 mark early in the trading session. Dealers are seen working in the dealing room of Hana Bank in Euljiro, Seoul. The intraday break below 2400 on the KOSPI is the first in about 1 year and 7 months since November 5, 2020 (2370.85). Photo by Moon Honam munonam@

[Asia Economy Reporter Ji Yeon-jin] Foreign investors have sold off more than 1.4 trillion won worth of domestic stocks following the impact of the U.S. 'Giant Step' (a 0.75bp base interest rate hike).

According to the Korea Exchange on the 19th, foreign investors net sold 1.4102 trillion won worth of domestic stocks from the 13th to the 17th. They net sold 1.5874 trillion won in the KOSPI market, while net buying 77.1 billion won in the KOSDAQ market.

In particular, foreign investors only net bought on the 16th, immediately after the U.S. significantly raised the base interest rate, and net sold on the other four trading days. The total net selling by foreign investors this month has reached 3.7094 trillion won.

The stock most sold by foreign investors last week was Samsung Electronics (-1.5769 trillion won). Foreign investors have sold Samsung Electronics for nine consecutive trading days this month, totaling 2.5369 trillion won.

Following Samsung Electronics were SK Hynix (-189 billion won), KakaoBank (-138.6 billion won), LG Chem (-97.3 billion won), and KB Financial Group (-94.6 billion won).

However, during this period, foreign investors net bought Woori Financial Group (293.4 billion won), SK Innovation (63.3 billion won), KT (41.8 billion won), and LG Energy Solution (38.7 billion won), among others.

The KOSPI index, led by large-scale selling from foreign investors, broke below the psychological resistance level of 2,500 early last week and further dropped to 2,440.93 on the 17th, marking a new yearly low.

Kim Sung-no, a researcher at BNK Investment & Securities, said, "Despite concerns about consumer prices, expectations for a slowdown in inflation in the second half remain valid, so it is reasonable to weigh the possibility of a KOSPI rebound." However, he emphasized, "For a sustained rise in stock prices, stabilization of raw material prices should precede." He added, "For the stock market to enter an upward trend in the second half, resolution of geopolitical risks must come first."