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Foreign Investors Dump South Korean Stocks
Net Foreign Selling Continues
Foreign Investors Dump South Korean Stocks
  • By Yoon Young-sil
  • February 27, 2020, 10:43
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Foreign investors net sold 887 billion won worth of stocks in the KOSPI market on Feb. 26.

Foreign investors are reducing their shareholdings in the South Korean stock market in the wake of COVID-19.

According to Korea Exchange, they posted a net selling of no less than 887 billion won in the KOSPI market on Feb. 26. The daily net selling volume hit an 80-month high that day and their net selling amounted to 2,442.7 billion won from Feb. 24 to 26.

KOSPI fell 1.28 percent and closed at 2,076.77 points on Feb. 26 and semiconductor and IT stocks slid in just one day. For example, foreign investors net-sold Samsung Electronics shares worth 397.3 billion won on Feb. 26 and worth 1,162.9 billion won from Feb. 24 to 26. Their net selling of SK Hynix stocks amounted to 339.3 billion won during the same period.

This has to do with the possibility that the global supply network may be seriously affected as the spread of the virus is accelerating in South Korea. Besides, the U.S. Centers for Disease Control and Prevention (CDC) mentioned the possibility of a pandemic the previous day, increasing investors’ preference for safe assets. Also, the net selling has to do with the fact that the South Korean stock market is more open than most of the other emerging stock markets.