Individual LG Energy Solution Sales While Foreigners 'Pick Up'
Individual and Foreign Trading Diverge
Individuals Buy Samsung Electronics the Most
[Asia Economy Reporter Kwon Jaehee] Despite an unfavorable macro environment, including the won-dollar exchange rate surpassing 1,350 won for the first time since the financial crisis, the Korean stock market showed a bear market rally in August, supported by foreign investors' buying momentum. Among this, the stocks that individual investors and foreigners net bought and sold diverged, drawing attention. Individuals bought 'Samsung Electronics' the most, while foreigners bought 'LG Energy Solution' the most.
According to the Korea Exchange on the 1st, looking at the trading performance by investor type for the entire month of August (1st to 31st), foreigners purchased stocks worth 3.8053 trillion won in the KOSPI market alone. On the other hand, institutions and individuals sold stocks worth 2.9486 trillion won and 29 billion won, respectively.
During this period, the stock that individual investors net bought the most was Samsung Electronics. The amount of Samsung Electronics shares purchased by individuals during this period was about 1.048 trillion won. Following that were KakaoBank (282.3 billion won), Naver (255.5 billion won), SK Hynix (154 billion won), LG Innotek (148.6 billion won), HMM (141.3 billion won), Samsung Electronics Preferred (101.2 billion won), Emart (97.7 billion won), OCI (92.4 billion won), and Korea Electric Power Corporation (84.7 billion won), all ranking within the top 10. It was mainly semiconductor stocks and those that had experienced significant declines that were bought.
Conversely, during the same period, the stock that foreigners bought the most was LG Energy Solution (579.9 billion won). Next were Samsung SDI (534.6 billion won), Hyundai Motor (530.7 billion won), Doosan Enerbility (449.1 billion won), SK Hynix (240.7 billion won), Hyundai Mipo Dockyard (214.5 billion won), LG Chem (187.8 billion won), Hyundai Mobis (186.8 billion won), Kia (177 billion won), and KakaoBank (141.8 billion won).
Among these, the top stocks that foreigners net bought also appeared among the top stocks that individuals net sold, drawing attention. During this period, individuals sold LG Energy Solution the most. Over the month of August, individuals net sold LG Energy Solution shares worth 435.9 billion won, which foreigners fully absorbed. Following that were Hyundai Motor (289 billion won), Samsung SDI (261.6 billion won), Hanwha Solutions (254.8 billion won), Celltrion (174.6 billion won), TIGER Crude Oil Futures Inverse (156.7 billion won), POSCO Chemical (152.2 billion won), KODEX Leverage (151.3 billion won), Hyundai Mipo Dockyard (145.5 billion won), and LG Electronics (106.8 billion won). In August, foreigners 'picked up' four of the top 10 stocks that individual investors net sold.
However, it is uncertain whether the foreign investors' net buying momentum that led the Korean stock market rally in August will continue into September. Factors such as the expanding fear over the speed and intensity of U.S. interest rate hikes and high market volatility are cited as variables.
Kim Daejun, a researcher at Korea Investment & Securities, said, "As the Federal Reserve's tightening stance is reconfirmed, there is a high possibility that the Korean stock market will be significantly shaken," adding, "We should keep in mind that the strength of foreign buying may weaken or the direction may reverse."
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