Foreign investors returned to KOSPI after 11 trading days. Attention is being paid to whether KOSPI can rebound further as foreigners who continued to move funds immediately after the presidential election switch back to net buying.
According to the Korea Exchange on the 23rd, foreign investors made a net purchase of 117.6 billion won in KOSPI on the 22nd. This is a conversion after 11 trading days. On this day, as net buying by foreigners increased, KOSPI rose slightly and closed at the 2501.24 level, recovering the 2500 level in 9 trading days.
Previously, foreigners net sold a total of 2.5494 trillion won from the 8th when the results of the US presidential election were confirmed to the 21st.
In particular, after Samsung Electronics (005930) announced its purchase of 10 trillion won worth of shares, KOSPI rose for three consecutive trading days from the 18th to the 20th, but even during this period, foreigners sold △52.9 billion won, △329.9 billion won, and △182.3 billion won. I cleaned it up.
Even if the period is extended, the holding ratio of foreign investors in KOSPI has steadily fallen from 35% in early August to 32% this month.
From the 8th to the 21st, individuals bought 1.0902 trillion won and institutions bought 947.1 billion won, respectively, supporting the downside of the KOSPI.
As foreigners returned, the stocks they bought also benefited.
On the 22nd, foreigners △SK Hynix (000660) (KRW 131.4 billion) △Doosan Energy (034020) (KRW 90.3 billion) △Hanwha Aerospace (012450) (KRW 36.9 billion) △Hyosung Heavy Industries (298040) (KRW 30.6 billion) △Hyundai Rotem (064350) was purchased the most (KRW 25.3 billion).
Among them, many succeeded in turning upward, including SK Hynix, whose stock price rose 4.68%, Doosan Energy (5.74%), Hanwha Aerospace (6.45%), and Hyundai Rotem (4.35%).
In the securities market, foreign investment sentiment is still frozen, but there are expectations that KOSPI will be able to rebound technically as it has solidified its downward trend.
Kang Dae-seok, a researcher at Yuanta Securities (003470), said, “Including this phase, there have been only 5 cases in the past 25 years where the KOSPI has fallen for more than 5 consecutive months,” adding, “Among them, there have been 6 consecutive months of decline in 2000 and 2008. “If the current situation is not a crisis comparable to the dot-com bubble or financial crisis, a rebound may be technically possible,” he said.
However, there are still predictions that the KOSPI will be able to rise only when uncertainties caused by Trump are eliminated.
Kim Young-hwan, a researcher at NH Investment & Securities, said, “Concerns about a slowdown in semiconductor profit momentum and policy uncertainty from the U.S. are still suppressing foreign investment sentiment,” adding, “For the KOSPI to exceed the 2,500p range and show a strong upward trend, demand for IT products during the U.S. year-end shopping season must be stronger than expected. “Policy uncertainty needs to be reduced after the inauguration of the new U.S. government,” he said.
(Seoul = News 1)
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What factors contributed to the recent rebound in the KOSPI index after 11 days of foreign net selling?
Interview: Navigating the KOSPI’s Recent Trends
Editor (Time.news): Welcome, everyone, to Time.news. Today, we have a special guest, Kang Dae-seok, a researcher from Yuanta Securities, to help us understand the recent fluctuations of the KOSPI index and the broader implications for foreign investment. Kang, thank you for joining us!
Kang Dae-seok: Thank you for having me! It’s great to discuss this important topic.
Editor: Let’s delve right in. We’ve seen some significant movement in the KOSPI recently. It closed at 2501.24, marking a small rebound after 11 days of foreign net selling. What prompted this change?
Kang Dae-seok: Well, the return of foreign investors was a key factor in this recent uptick. On November 22nd, foreign investors made a net purchase of 117.6 billion won, which indicates a shift in sentiment. After a long stretch of selling, this conversion is noteworthy because it could signal the beginning of a more sustained recovery for the market.
Editor: Interesting! There was a net outflow of nearly 2.55 trillion won from the 8th to the 21st due to the presidential elections in the U.S. Can you elaborate on how global events influence local markets like the KOSPI?
Kang Dae-seok: Absolutely. Global events, especially significant political outcomes like the U.S. presidential election, tend to create uncertainty in the market. This often leads to a cautious approach from foreign investors, who may liquidate positions or avoid new investments during such volatile periods. As you mentioned, the KOSPI’s decline mirrored these reactions. However, with the foreign net buying reported recently, it shows that investors are starting to feel more confident again.
Editor: That’s an important shift. You mentioned that the KOSPI has historically experienced downturns over extended periods. Can you share more about previous instances and what might be different this time?
Kang Dae-seok: In the past 25 years, we’ve seen the KOSPI fall for more than five consecutive months only five times. Notably, during 2000 and 2008, the market faced significant crises. However, the current situation doesn’t seem to be akin to those crises. As the global economy stabilizes post-elections, we might expect a technical rebound if the underlying economic fundamentals stay strong.
Editor: That gives us hope. However, we also see concerns regarding the semiconductor sector and U.S. policy uncertainties. How do these issues affect projections for the KOSPI?
Kang Dae-seok: The semiconductor sector is crucial for Korea’s economy, and any signs of profit momentum slowing can deter foreign investments significantly. Additionally, ongoing policy ambiguity in the U.S. raises red flags for investors as they assess market risks. For the KOSPI to sustain above the 2500 point threshold, we need a robust demand for IT products during the U.S. year-end shopping season, alongside clearer policies from the new U.S. administration.
Editor: It seems that international dynamics are at play here. What are some indicators you’ll be watching closely in the coming weeks that could signal further movements in the KOSPI?
Kang Dae-seok: I’ll be monitoring foreign investment flows, as they can significantly impact market sentiment. Additionally, I’ll keep a close eye on the performance of key sectors like semiconductors and the outcome of U.S. policy decisions. The demand during the holiday season in the U.S. will also be crucial to gauge the KOSPI’s path ahead.
Editor: Thank you, Kang. This insight into market dynamics is invaluable as investors navigate these uncertain waters. Any final thoughts for our readers?
Kang Dae-seok: Always keep an eye on global trends and be aware of the interconnectedness of markets. A well-informed approach is always advantageous, especially in volatile international environments. Thank you for having me!
Editor: Thank you, Kang. It’s been a pleasure discussing these important developments with you. Stay tuned to Time.news for more updates on the KOSPI and global markets!