In Feb., as the investment choices of individuals and foreigners diverged sharply, foreigners came out ahead in terms of returns.
On the 18th, according to the Korea Exchange (KRX), from the 2nd to the 13th of this month, the No. 1 net purchase by individual investors was SK hynix, with 324.73 billion won bought. That was followed by NAVER (716.4 billion won), Hyundai Motor (502.6 billion won), Hanwha Aerospace (485.2 billion won), and Kakao (402.9 billion won).
Foreigners, by contrast, net bought Doosan Enerbility (599.2 billion won) the most, followed by Hanwha Solutions (298.4 billion won), Celltrion (259.2 billion won), Amorepacific (158.4 billion won), and Hyosung Heavy Industries (157.9 billion won).
There was not a single overlap between the top five net purchase stocks of the two sides.
The results also diverged. During the period, the average return of the top five individual net purchase stocks was -6.76%, with all in negative territory, while the top five foreign net purchase stocks rose an average of 18.73%, effectively a "complete victory."
The directions also differed in net selling. Individuals net sold 732.9 billion won of Doosan Enerbility, which foreigners bought the most. They also sold heavily Samsung Electronics (-528.2 billion won), Hanwha Solutions (-528.2 billion won), Celltrion (-457.3 billion won), and Samsung Electronics preferred (-299.5 billion won).
Foreigners, meanwhile, net sold SK hynix—the stock individuals bought the most—amounting to 4.881 trillion won, followed by Samsung Electronics (-2.167 trillion won), Hyundai Motor (-754.8 billion won), SK Square (-526.2 billion won), and Hanwha Aerospace (-418.7 billion won).
However, in the week just before the Lunar New Year holiday (the 9th to the 13th), foreigners returned to semiconductor stocks. They resumed betting by net buying 2.5597 trillion won of Samsung Electronics and 182.9 billion won of SK hynix. On this momentum, Samsung Electronics rose for three straight sessions, closing at 181,200 won on the 13th, a record high.
The securities industry expects the favorable semiconductor cycle to continue. Kim Seong-no, an analyst at BNK Investment & Securities, said, "In January, the export price index for DRAM also surged 102.7% year over year, so the earnings improvement trend centered on semiconductors is likely to be maintained this year," adding, "Historically, however, there have been only two instances where DRAM export prices rose 100% year over year, so expectations for additional price increases are inevitably limited."