"A 74 Trillion Won Sell-Off Bomb Is Coming," They Said... NPS Turns Net Buyer in July After Rebalancing Resumes

[Financial News] As the National Pension Service (NPS) resumed rebalancing its asset mix this month, it has turned into a net buyer on a monthly basis for the first time this year. Concerns that the NPS, often called a major force in the domestic stock market, would trigger a massive wave of selling have also eased.
According to the Korea Exchange on the 26th, pension funds, including the NPS, bought a net 68.4 billion won on the Korea Exchange Main Board from the start of this month through the 24th. They had posted net selling in the first half of the year, with monthly outflows of 1.8911 trillion won in January, 681.6 billion won in February, 764.8 billion won in March, 896.1 billion won in April, 2.1617 trillion won in May, and 2.337 trillion won in June.
In the first half, net selling accounted for more than half of trading days each month. This month, however, it has been limited to just six trading days. With five trading days left until next month, it could still return to net selling, but the scale is expected to remain small.
The top net purchase this month was SK hynix, with 425.8 billion won, marking the second straight month it has been the most heavily bought stock. SK Innovation ranked second with 224.7 billion won, followed by S-OIL with 174.4 billion won, DB Insurance with 109.4 billion won, Celltrion with 95.3 billion won, and Korean Air with 89.9 billion won.
SK Square topped the net selling list with 575.7 billion won. Samsung Electro-Mechanics, Samsung Life Insurance, and Samsung Electronics ranked second, third, and fifth, respectively, at 313.6 billion won, 123.8 billion won, and 111.5 billion won, with Samsung Group affiliates dominating the upper ranks. LG Innotek came in fourth with 111.9 billion won.
Concerns over an NPS "sell-off bomb" began after the suspension of domestic stock rebalancing ended at the end of last month, raising fears that a selling spree worth up to 74 trillion won would begin this month. But as the fund instead showed a net buying trend, securities firms have analyzed that recent supply-demand distortions and a market correction in the domestic stock market likely played a role.
Meanwhile, in response to concerns about a pension fund "sell-off bomb," Kim Sung-ju, chairman of the National Pension Service, countered that "a large-scale sale cannot happen in a short period of time." Jeong Eun-kyeong, minister of health and welfare, also said that "even if rebalancing occurs, we will closely monitor the management process so that market impact is minimized."
[email protected] Kim Hee-sun Reporter