As Samsung Electronics and SK hynix falter, retail investors see an opportunity and buy 14 trillion won over four days

[Financial News] As Samsung Electronics and SK hynix entered a correction after hitting record highs, individual investors rushed in to buy the dip. Over the past four trading days, individuals net bought about 14.3 trillion won in KOSPI stocks, and roughly 75%, or more than 10.7 trillion won, was concentrated in Samsung Electronics and SK hynix. In KOSDAQ, however, they net sold more than 1 trillion won, suggesting a shift of funds into large semiconductor stocks.
According to the Korea Exchange (KRX) on the 25th, individual investors net bought 1.42791 trillion won in the Korea Exchange Main Board from the 19th to the 24th, over four trading days. During the same period, foreigners net sold 1.11937 trillion won, while institutions net sold 334.28 billion won. In effect, individuals absorbed the shares dumped by foreigners and institutions.
Buying was concentrated in Samsung Electronics and SK hynix. Over the past four trading days, individuals net bought 329.97 billion won in Samsung Electronics and 738.02 billion won in SK hynix. Combined, the two stocks accounted for 1.06799 trillion won, or 74.8% of total KOSPI net buying.
Analysts say the move appears to reflect bargain hunting amid the recent pullback in share prices. Samsung Electronics fell from 363,500 won on the 18th to 340,500 won on the 24th. Compared with its intraday high of 380,000 won on the 19th, the stock is down more than 10%.
SK hynix drew attention after briefly topping 3 million won in pre-market trading on the 23rd for the first time ever, but it later showed sharp volatility, plunging more than 11% intraday that day. After surging to an all-time high of 2.959 million won on the 22nd, the stock has lost some momentum as profit-taking orders emerged.
A securities industry official said, "It appears that individual investors viewed the recent sharp declines in Samsung Electronics and SK hynix as a buying opportunity."
By contrast, KOSDAQ saw an outflow of funds. Individuals net sold 1.1033 trillion won in the KOSDAQ market from the 19th to the 24th. The move suggests that investors pulled money out of KOSDAQ, which is centered on growth and small- to mid-cap stocks, and concentrated it in large semiconductor names such as Samsung Electronics and SK hynix.
A financial investment industry official said, "Recently, individual funds have been concentrating on large semiconductor stocks with clearer earnings visibility than KOSDAQ names," adding, "As Samsung Electronics and SK hynix corrected after a short-term rally, a wave of bargain buying from individuals appears to have flowed in."
Lee Eun-taek, a researcher at KB Securities, said, "As the stock market rally enters a later stage, investors tend to prefer companies with proven profit-generating ability over stocks whose earnings have not been verified." He added, "In the current market, semiconductors are seen as a representative sector that combines structural demand growth with earnings improvement."

dschoi@fnnews.com Choi Doo-sun Reporter