Foreign Investors Sell Net 4.657 Trillion Won for 12 Straight Trading Days, but Buy KOSDAQ Growth Stocks

[Financial News] Foreign investors continued to sell net shares on KOSPI for 12 straight trading days, but they bought more than 2 trillion won worth of stocks in the KOSDAQ market. While taking profits mainly from large semiconductor names such as Samsung Electronics and SK hynix, they have been adding growth stocks in robotics, biotech and artificial intelligence (AI) to their portfolios.
According to the Korea Exchange (KRX) on the 25th, foreigners sold a net 4.65738 trillion won on KOSPI over 12 consecutive trading days from the 7th to the 22nd. Net selling in Samsung Electronics and SK hynix alone reached 1.89403 trillion won and 1.95924 trillion won, respectively.
By contrast, foreigners posted net purchases of 212.82 billion won in the KOSDAQ market during the same period. In particular, they were net buyers for six straight trading days from the 15th to the 22nd. During that stretch, individuals and institutions sold a net 303.5 billion won and 894.8 billion won, respectively, while foreigners were the only net buyers. As foreign buying continued, buy-side sidecars were triggered on the KOSDAQ for two consecutive days on the 21st and 22nd.
Among the top net-bought stocks were several KOSDAQ technology growth names, including Fadu (311.8 billion won, 3rd), Seojin System (156.3 billion won, 6th), Rainbow Robotics (135.6 billion won, 9th) and ABL Bio Inc. (124.4 billion won, 10th). Investors took profits in large semiconductor stocks, but funds flowed into growth themes such as robotics, AI and biotech.
Brokerage firms say the recent shift in foreign flows is linked to a easing of concentration in large semiconductor stocks. They note that while profit-taking is appearing in mega-cap chip names such as Samsung Electronics and SK hynix, money is rotating into non-semiconductor sectors that had been relatively overlooked, including robotics, gaming, power equipment and biotech.
The launch of the National Growth Fund is also seen as a factor that could boost investor sentiment toward KOSDAQ. Market watchers expect the fund’s money to flow mainly into advanced industries such as pharmaceuticals and biotech, robotics and aerospace. Still, some say the recent strength in KOSDAQ is more likely a technical rebound and bargain hunting after a sharp decline than the start of a sustained uptrend.
Sebin Kim, a researcher at Yuanta Securities Korea Co., Ltd., said, "The People’s Participation Growth Fund is designed to improve liquidity by supplying new capital to unlisted companies and KOSDAQ-listed firms that entered through the technology-special listing route," but added, "If the strength in semiconductors and the rally in large-cap stocks continue, KOSDAQ weakness could persist. For a long-term trend reversal, concrete disclosures such as technology transfer deals by top biotech firms are needed."
koreanbae@fnnews.com Bae Hangeul Reporter