Return of Foreign Investors?
Foreign investors recorded a net buy in both the KOSPI and KOSDAQ markets for the first time in about two months on April 27.
That day, KOSPI rose 1.79 percent and closed at 1,922.77 points after falling 1.34 percent the previous day. The closing price topped 1,920 points for the first time since March 10.
The index was raised mainly by institutional and foreign investors. In the KOSPI market, their net buying totaled 528 billion won and 18.6 billion won, respectively. Foreign investors showed a net buy in six trading days. On the other hand, individual investors’ net selling added up to 548.9 billion won.
Foreign investors bought a large number of major financial stocks, including 38.1 billion won of KB Financial stocks. In KOSDAQ, which rose 2.2 percent to close at 646.86 points, foreign and institutional investors net-bought stocks worth 74.1 billion won and 11.7 billion won, respectively. In that market, individual investors net-sold stocks worth 56.3 billion won.
“Foreign investors are still hesitating to buy South Korean stocks, and yet money inflow is anticipated with the global liquidity expanding,” said Daishin Securities research analyst Lee Kyung-min.