Foreign and Institutional Investors Turn Net Buyers as Retail Selling Hits Record on KOSPI

 
Market flows have flipped in a month. Foreign investors shifted from heavy selling to net buying, while retail investors who bought aggressively last month moved to record net selling. As foreign and institutional investors bet on further gains led by large semiconductor stocks, retail investors appear to be taking profits and building more defensive positions.
 
The Korea Exchange said the KOSPI has risen 28.1% so far this month, posting a sharp rebound and reaching record levels, including an intraday move above 6,500. Large-cap shares led the rally: Samsung Electronics, the index’s biggest stock by market value, gained 31.2%, and No. 2 SK hynix rose 51.4%.
 
Foreign and institutional buying stood out. After posting a record monthly net sale of 35.88 trillion won on the KOSPI last month, foreign investors turned net buyers this month, purchasing more than 2.5 trillion won through April 24. Institutions, which sold about 1 trillion won last month, bought more than 6.9 trillion won over the same period. 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 moved the other way. They have sold a net 14.7 trillion won so far this month, putting them on track for the largest monthly net sale on record. The figure has already surpassed the previous record set in September last year. Still, retail buying has continued for the past three trading sessions, leaving open whether the record will ultimately be extended.
 
Profit-taking was most evident in large semiconductor names. Retail investors 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’s plunge, when retail investors bought a net 16.8172 trillion won of Samsung Electronics and 7.0705 trillion won of SK hynix. The article attributed the shift to retail investors buying aggressively as the market fell 19.08% amid heightened U.S.-Iran tensions, then quickly locking in gains during the rebound.
 
The market is also focusing on rapidly rising earnings expectations for semiconductors, with memory prices climbing and supply tightness persisting, supporting forecasts that the upturn will continue for now. Brokerages said the KOSPI is rewriting record highs and that the uptrend is strengthening.
 
Kim Jong-min, a researcher at Samsung Securities, said, “The current uptrend is unlikely to break easily and is expected to move up another step,” adding, “As supply is absorbed, the run of new highs creates strong upward momentum, so this is a time to use the market’s energy rather than exit on premature calls of a peak.”