Foreign and Institutional Investors Turn Net Buyers as Retail Investors Post Record Selling

Foreign and institutional investors reversed course within a month, shifting from heavy selling to net buying, while retail investors moved in the opposite direction with record-scale net sales. As foreigners and institutions bet on further gains led by large semiconductor stocks, retail investors appeared to lock in profits and take a more defensive stance.
 
According to the Korea Exchange on the 26th, the KOSPI has risen 28.1% this month, staging a sharp rebound and reaching record levels, including an intraday move above 6,500. Large-cap stocks led the advance: market heavyweight Samsung Electronics gained 31.2%, and No. 2 SK hynix rose 51.4%.
 
Buying by foreigners and institutions stood out. After posting a record monthly net sale of 35.88 trillion won in the KOSPI market last month, foreign investors turned net buyers this month, purchasing more than 2.5 trillion won worth of shares through the 24th. Institutions, which sold about 1 trillion won last month, bought more than 6.9 trillion won this month. By stock, foreigners were net buyers of Doosan Enerbility (1.133 trillion won), Samsung Electronics (867 billion won) and SK hynix (710.5 billion won). Institutions bought SK hynix (1.5587 trillion won), Samsung SDI (575.1 billion won) and Samsung Electronics (554.1 billion won).
 
Retail investors showed the opposite pattern. This month, individuals have sold a net 14.7 trillion won, putting them on track to set a new monthly record for net selling. The total has already surpassed the previous record set in September last year. Still, retail buying has continued over the past three trading sessions, leaving open whether the record will ultimately be extended.
 
Profit-taking in major semiconductor names was particularly pronounced. Individuals sold a net 6.5814 trillion won of Samsung Electronics and 2.498 trillion won of SK hynix this month. That contrasts with last month, when retail investors bought on weakness, purchasing a net 16.8172 trillion won of Samsung Electronics and 7.0705 trillion won of SK hynix during a steep market drop. The KOSPI fell 19.08% last month as tensions between the United States and Iran escalated, and retail investors then moved quickly to realize gains during the rebound, the report said.
 
The market is focusing on rapidly rising earnings expectations for semiconductors. With memory prices climbing and supply remaining tight, some expect the industry upturn to persist for the time being. Brokerages said the KOSPI is also rewriting record highs, lifting the uptrend to a higher level.
 
Kim Jong-min, a researcher at Samsung Securities, said, “The current uptrend is unlikely to break easily and is expected to move to a higher stage.” He added, “As supply is absorbed, the continued record-high flow creates strong upward momentum, so rather than leaving the market based on premature peak calls, this is the time to use the energy of the rise.”