Stock Liquidation
According to the KRX, foreigners sold 751.3 billion won (US$635.0 million) in Samsung Electronics shares during 17 straight net selling days from Aug. 5 to 28 on the Korea Stock Exchange. During this period, foreign ownership of Samsung Electronics slid to 51.10 percent from 51.59 percent.
Samsung Electronics was followed by SK Hynix. Foreigners dumped 549.8 billion won (US$464.7 million) of SK Hynix stocks while continuing the sixth longest selling streak in history. The sales lowered foreign ownership of SK Hynix stocks by 2.42 percentage points to 48.79 percent from 51.21 percent. A recent boom in M&As in the semiconductor memory market is threatening a monopoly of Samsung Electronics and SK Hynix.
In particular, in July a plan by the Ziguang Group in China to take over Micron Technology in the U.S. surfaced, expanding market uncertainties. Moreover, the recent stock market crash in China sent major Asian markets reeling. This change, coupled with uncertainties about a rise in the interest rate in the U.S., compelled foreigners to sell stocks of Samsung Electronics and SK Hynix in large numbers.
Samsung Electronics and SK Hynix were followed by SK Telecom (205.1 billion won or US$173.4 million), POSCO (98.6 billion won or US$83.3 million), the Korean cosmetics giant Amore Pacific (94.0 billion won or US$79.4 million), and LG Household & Health Care (86.7 billion won or US$73.3 million). Amore G (84.5 billion won or US$71.4 million) held eighth place in the foreign net sales standings. On the other hand, foreigners made large-scale purchases of stocks in the energy, chemicals, pharmaceuticals, and insurance sectors. It was SK Innovation stocks that foreigners bought most during the same period, buying into the company to the tune of 85.4 billion won (US$72.2 million).
Other energy and chemical stocks such as Lotte Chemical (33.9 billion won or US$28.7 million), S-Oil (23.7 billion won or US$20.0 million), and Kumho Petrochemical (17.4 billion won or US$14.7 million) ranked high in the buy standings. Hanmi Science (61.9 billion won or US$52.3 million) stood third in the foreign net buying standings. Another pharmaceutical player, Ildong Pharmaceutical Co. (23.7 billion won or US$20.0 million), placed high in the rankings.
In the insurance sector, foreigners made big purchases of stocks of Hyundai Marine & Fire Insurance (43.5 billion won or US$36.8 million), Dongbu Insurance (15.2 billion won or US$12.8 million), and KB Insurance (13.1 billion won or US$11.1 million). Besides, Hyundai Industrial (336 billion won or US$284 million), Cosmax (32.6 billion won or US$27.6 million), GS Retail (22.1 billion won or US$18.7 million), and Hyundai Wia (20.6 billion won or US$17.4 million) made the top ten.