Foreign investors dump $6.6 billion in Samsung, SK hynix stocks
Seoul, May 25
Foreign investors sold more than 10 trillion won worth of shares in Samsung Electronics and SK hynix last week while extending their net-selling streak in the South Korean stock market to 12 trading sessions, data showed on Monday.
Foreigners offloaded a net 5.33 trillion won worth of SK hynix shares and 5.26 trillion won worth of Samsung Electronics shares during the week beginning May 18, according to the data from the Korea Exchange and Yonhap Infomax.
Combined net sales of the two market bellwethers accounted for 73 percent of foreigners' total net selling of Korean stocks, which came to 14.45 trillion won over the cited period.
The selling trend has continued over the past 12 trading sessions since May 7, when foreign investors turned net sellers.
During the 12-session period, foreigners sold a net 19.53 trillion won worth of SK hynix shares and 18.87 trillion won worth of Samsung Electronics shares, accounting for 82.9 percent of their total net selling of 46.34 trillion won.
Last week, Hyundai Mobis Co., Hyundai Motor Co., LG Electronics Inc. and Samsung Electro-Mechanics Co. were also among the most heavily sold stocks by foreign investors.
In contrast, offshore investors increased purchases of robotics and energy storage system (ESS) stocks.
Foreigners bought a net 370 billion won worth of Doosan Robotics Inc. shares and 148.9 billion won worth of Samsung SDI Co. shares on the benchmark Korea Composite Stock Price Index (KOSPI) last week.
On the secondary Korea Securities Dealers Automated Quotations (KOSDAQ) market, foreigners purchased a net 1.29 trillion won worth of shares last week, including 155.6 billion won in Fadu Inc., a fabless company specialising in storage systems for artificial intelligence (AI) data centres, and 128 billion won in Seojin System Co., an ESS and telecom equipment maker.
The shift came amid strong growth expectations for the global robotics and ESS markets driven by demand related to physical AI and AI data centres.
Analysts said the recent foreign selloff appears to reflect portfolio rebalancing following sharp gains in semiconductor shares, with funds moving into sectors viewed as having greater upside potential.
"Foreign investors may have responded with selling as the share of Korean semiconductor stocks in their portfolios increased sharply due to steep price gains," said Kang Jin-hyuk, an analyst at Shinhan Securities. "They appear to have shifted funds to other stocks where earnings are improving but share prices remain relatively low."
— IANS
Reader Comments
Foreign investors selling 82% of total net selling in just two stocks is scary. Shows how concentrated Korean market is on semiconductors. India should learn - we need more diverse sectors for stable growth. Our IT and pharma sectors are good but we need more.
Notice that while they sold Samsung and SK hynix, they bought Doosan Robotics and Samsung SDI. This shift to robotics and ESS is a clear signal for global investors. India should double down on AI and clean energy sectors to attract FII flows. No time to waste! 💪
This is a clear sign of profit booking after sharp gains in semiconductor stocks. But 12 consecutive sessions of selling is worrying. Korea's market is too dependent on memory chips. India's market is more diversified, but we still have high exposure to IT and pharma. Need to watch out.
Respectful criticism: India should note how Korea's market reacts to global trends. Our regulatory environment and tax policies need to be more investor-friendly. The recent FII selling in Indian markets was also painful. Let's create a stable ecosystem that attracts long-term capital. 🇮🇳
As a global investor, this makes sense. After the AI boom pushed semiconductor stocks too high, rotating into robotics and ESS is logical. But India's market is different - we have strong domestic consumption and services growth. I'd still invest in India over Korea any day.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.