As volatility increases in the domestic stock market, the investment strategies of individual and foreign investors are diverging significantly. Individual investors continue to focus on artificial intelligence (AI) semiconductors, while foreign investors are turning their attention to the defense, bio, and automotive sectors. Institutional investors are selectively investing in power infrastructure and construction.
According to the Korea Exchange, from August 3 to August 7, the top stocks purchased by individual investors were SK Hynix and Samsung Electronics. During this period, individuals net bought 4.44 trillion won worth of SK Hynix and 3.84 trillion won worth of Samsung Electronics. Other notable purchases included Samsung Electro-Mechanics (636.7 billion won), SK Square (229.8 billion won), Samsung Electronics Preferred (203.4 billion won), and Hanmi Semiconductor (82.5 billion won).
The buying trend among individual investors reflects expectations for the expansion of the AI industry and growth in the high-bandwidth memory (HBM) market. Despite recent market volatility, funds have concentrated in the high-growth semiconductor sector.
Institutional investors have opted for a more diversified approach. The top net purchases by institutions included Samsung Electro-Mechanics (253.6 billion won), Hanwha Solutions (102.2 billion won), LG Energy Solution (100.8 billion won), APL (98.2 billion won), Hyosung Heavy Industries (90 billion won), and GS Construction (85.5 billion won). There has been notable interest in semiconductors, secondary batteries, power infrastructure, and construction sectors.
Foreign investors have taken a markedly different investment approach. They net bought Samsung C&T (111.3 billion won), Celltrion (83.8 billion won), Samsung Biologics (79.2 billion won), Hanwha Aerospace (72.5 billion won), Kia (67.7 billion won), and SK (64.3 billion won). Instead of AI semiconductors, they have restructured their portfolios around bio, defense, and automotive sectors.
Notably, defense stocks like Hanwha Aerospace and bio stocks such as Samsung Biologics and Celltrion have maintained a strong performance even amid increased market volatility. Analysts in the securities industry suggest that the overall upward trend across sectors is concluding, giving way to a phase of differentiation based on performance and growth potential.
An industry insider stated, "Expectations for AI semiconductors remain valid, but in the short term, sector rotation is occurring simultaneously. Individuals are focusing on semiconductors, while foreigners are diversifying their investments towards defense and bio sectors."
* This article has been translated by AI.
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