Foreigners Net Buy 1.8 Trillion KRW in Domestic Stocks This Month... Largest Scale This Year

Focus on the Real Growth Stocks Foreigners Are Shopping For

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] Foreign investors have continued a four-week consecutive net buying rally this month, purchasing approximately 1.8 trillion KRW worth of domestic stocks.

According to the Korea Exchange on the 31st, foreign investors net purchased about 719.6 billion KRW in the domestic stock market from the 25th to the 29th. This marks a fourth consecutive week of net buying this month, with a total net purchase amount of 1.8108 trillion KRW for the month. This is the first time this year that foreign investors have net purchased over 1 trillion KRW.

Last week, foreign investors primarily net bought LG Energy Solution (434.7 billion KRW), Hanwha Solutions (77.3 billion KRW), Hyundai Motor (74.8 billion KRW), Samsung Electronics (55.0 billion KRW), and Kia (52.7 billion KRW). On the other hand, they net sold OCI (-34.2 billion KRW), HYBE (-32.2 billion KRW), Amorepacific (-30.7 billion KRW), NAVER (-22.9 billion KRW), and LG Electronics (-22.4 billion KRW) in significant amounts.

Over the month, the stock most purchased by foreign investors was Samsung Electronics, with net purchases amounting to 546 billion KRW. This was followed by LG Energy Solution (467.8 billion KRW) and SK Hynix (257.4 billion KRW).

They also net sold NAVER (-148.9 billion KRW), Hwasung (-89.3 billion KRW), and Samsung Electronics Preferred Shares (-71.4 billion KRW).

Son Joo-seop, a researcher at Cape Investment & Securities, stated, "Although foreign capital outflows and shareholding reductions continued, there has recently been a turnaround. Given the large scale of outflows, foreign investors are likely to have the greatest potential for future capital inflows. Considering the KOSPI and the KRW-USD exchange rate, which may feel cheaper to foreigners and allow for hedging, there are factors supporting foreign inflows."

He added that foreign investors are "shopping in healthcare, energy/chemicals, consumer staples, defensive consumer goods, and communication sectors," and noted, "At this point, it would be advantageous to build portfolios with companies maintaining profit growth momentum as foreign capital with entry capacity into the domestic stock market concentrates."