[Foreign Investment Trends] 2.7 Trillion Won 'Buy Korea' This Month... "Expecting Currency Gains at Historic Low"

On the 28th, the KOSPI opened at 2,276.73, down 12.05 points (0.53%) from the previous trading day, at the Hana Bank headquarters dealing room in Jung-gu, Seoul. The won-dollar exchange rate started at 1,423.0 won, up 6.0 won from the previous trading day. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Ji Yeon-jin] Foreign investors have net purchased approximately 2.7 trillion KRW worth of domestic stocks since the beginning of this month. This marks a shift to net buying just one month after they recorded a net selling dominance by offloading 2.5 trillion KRW worth of domestic stocks last month.

According to the Korea Exchange on the 30th, foreign investors net purchased 1.1146 trillion KRW worth of stocks in the domestic market from the 24th to the 28th. They recorded net purchases of 1.0669 trillion KRW in the KOSPI market and 128.1 billion KRW in KOSDAQ.

With four consecutive weeks of net buying this month, the total amount of stocks foreign investors have acquired in the domestic market reaches 2.7944 trillion KRW.

Foreign investors, who had been selling domestic stocks earlier this year, switched to net buying starting in July and maintained a buying dominance for two consecutive months. However, they turned to net selling last month and have resumed purchasing domestic stocks again after one month.

The stocks most purchased by foreign investors this month were Samsung Electronics (1.2588 trillion KRW), followed by SK Hynix (719 billion KRW). Samsung SDI and LG Energy Solution (428.3 billion KRW), as well as KT&G (185.6 billion KRW), were also heavily bought.

On the other hand, NAVER was sold off by approximately 912.7 billion KRW, followed by POSCO Holdings (-144.6 billion KRW), Kakao (-128 billion KRW), KakaoBank (-73.1 billion KRW), and SKC (-58.2 billion KRW) in net selling order.

Researcher Kang Hyun-ki of DB Financial Investment said, "After the stock market bubble burst, a strong trend in value stocks has emerged, and the Korean stock market, with valuations at historic lows, is suitable for employing this strategy." He added, "Moreover, as the Federal Reserve's interest rate hike cycle approaches its peak, the won-dollar exchange rate may decline, attracting overseas funds aiming for currency gains, which could provide momentum for market supply and demand."