As South Korea's stock market experiences significant fluctuations, individual investors have recently focused on buying shares of Samsung Electronics and SK Hynix, with some taking profits during the market rebound.
According to the Korea Exchange, individual investors net purchased a total of 589.6 billion won ($440 million) in the stock and KOSDAQ markets over two days, on June 5 and June 8. In contrast, institutional investors sold a net 309.3 billion won, while foreign investors sold 300.7 billion won.
The buying spree was concentrated on large-cap semiconductor stocks. On June 5, individual investors net bought 203.2 billion won in SK Hynix and 179.5 billion won in Samsung Electronics, followed by additional purchases of 145.1 billion won in Samsung Electronics and 41.3 billion won in SK Hynix on June 8.
As a result, individuals net bought 324.6 billion won in Samsung Electronics and 244.5 billion won in SK Hynix over the two days, with a total of 569.1 billion won directed toward these semiconductor stocks, accounting for the majority of net purchases.
However, the trading pattern shifted on June 9, when individuals net sold 112.8 billion won. In contrast, institutional investors returned to a buying position with a net purchase of 270.3 billion won, while foreign investors recorded a net sale of 167.5 billion won.
The top net purchases by individuals also changed, with Hyundai Motor leading at 22.4 billion won, followed by LG Electronics (12.7 billion won), Samsung Electronics preferred shares (10.5 billion won), NAVER (9.6 billion won), and Hyundai Mobis (8.7 billion won). This indicates a shift in buying interest from semiconductor stocks to automotive, platform, and dividend stocks.
Market analysts suggest that individual investors are adopting a strategy of "buying during market declines and selling during rallies." Indeed, individuals engaged in substantial net buying on June 5 and June 8, when the market was down, but switched to net selling during the rebound on June 9.
Over the three trading days, individuals recorded a cumulative net purchase of 476.8 billion won, while institutions and foreign investors had net sales of 39.0 billion won and 468.2 billion won, respectively. This indicates that while institutions and foreign investors were net sellers, individuals actively sought to buy undervalued stocks.
On June 9, the domestic stock market rebounded sharply after the previous day's steep decline. The market had plummeted due to rising U.S. Treasury yields, a drop in U.S. semiconductor stocks, and concerns over military conflicts in the Middle East, triggering a circuit breaker. However, a significant influx of buying on June 9 led to a rise in both the KOSPI and KOSDAQ indices.
Lee Kyung-min, a researcher at Daishin Securities, explained, "The previous day's sharp decline in the domestic stock market was the result of a combination of rising U.S. Treasury yields, falling U.S. semiconductor stocks, and escalating military tensions in the Middle East. However, as buying interest in semiconductor stocks returned in the U.S. market and Middle East risks eased, investor sentiment quickly recovered."
* This article has been translated by AI.
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