Despite recent fluctuations in the KOSPI, individual investors have actively engaged in buying on dips rather than exiting the market. While foreign investors took significant profits, individuals recorded net purchases exceeding 13 trillion won, primarily focusing on large-cap semiconductor stocks.
According to the Korea Exchange, individual investors net bought 13.2416 trillion won in the securities market from July 1 to July 13. In contrast, foreign investors net sold 14.1051 trillion won, while institutions net bought 3.506 trillion won.
The buying trend among individuals was concentrated in large-cap semiconductor stocks. The top net purchases during this period included SK Hynix and Samsung Electronics, followed by Samsung Electro-Mechanics, Hanwha Ocean, LS ELECTRIC, and LG Energy Solution. This trend is interpreted as a response to the recent price adjustments that eased the burden on semiconductor and large tech stocks.
However, overall investment liquidity in the stock market has slightly decreased. Investors are withdrawing funds amid extreme market volatility. According to the Korea Financial Investment Association, as of July 10, the total investor deposit was 105.5758 trillion won, a decrease of 1.5521 trillion won from the previous trading day.
Market analysts have noted that the recent sharp decline in the domestic stock market is more influenced by investor sentiment and supply-demand issues than by deteriorating corporate earnings. Lee Jun-young, a researcher at Eugene Investment & Securities, stated, "The recent drop in semiconductors is a result of supply-demand dynamics and volatility rather than earnings deterioration. Therefore, it is essential to maintain a buying perspective as this decline does not harm the overall profitability of the semiconductor sector."
Lee Kyung-min, a researcher at Daishin Securities, added, "The recent semiconductor drop is a complex result of cracks in the AI industry's narrative, valuation corrections, and supply shocks due to leverage liquidation. The upcoming second-quarter earnings season and the results announcements from major tech companies like Samsung Electronics and SK Hynix at the end of July will be pivotal for restoring investor sentiment."
* This article has been translated by AI.
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