Stock market volatility sparked by U.S. airstrikes on Israel has led to losses for individual investors. Individual investors bought 22 trillion won worth but underperformed the indexes. Foreign investors, by contrast, beat the market even amid the volatile trading.
According to the Korea Exchange (KRX) on the 22nd, from on the 3rd to the 20th, the first trading days after the U.S. and Israel's airstrikes on Iran, 8 of the top 10 stocks most net bought by individual investors on the main board posted negative returns compared with the end of last month. Only two recorded positive returns.
The most accumulated stock was Samsung Electronics. Individual investors net bought 8.361 trillion won. That was 38% of total net purchases, but Samsung Electronics shares have fallen 7.90% this month. SK hynix, the second most accumulated stock (net purchases of 2.806 trillion won), also dropped 5.09% in the same period.
This is seen as the result of dampened sentiment toward technology shares as expectations for U.S. rate cuts receded on inflation fears stemming from a recent surge in global oil prices. In addition, Hyundai Motor, the No. 3 net buy, plunged 23.29%, and Kia, the fourth most accumulated, fell 18%.
In addition, Hyundai Rotem (-21.87%), Kbank (-20.48%), NAVER (-12.97%), and Korea Electric Power Corporation (-15.98%) also tumbled one after another. Defense stock LIG Nex1 (29.86%) and refiner S-Oil (1.64%) rose, but the 10 stocks fell an average of 9.41%, underperforming the KOSPI return (-7.41%).
Foreign investors beat the market even amid the volatile trading. The average return of the top 10 most net bought KOSPI stocks by foreigners was -0.25%, outperforming the KOSPI (-7.41%). The gap with individuals' return (-9.41%) was large.
Among the top 10 stocks by foreign net buying, four posted positive returns compared with the end of last month, more than the two among individual investors. In particular, shares of Doosan Enerbility, the No. 1 foreign net buy, have risen 3.1% this month.
A source in the securities industry said, "As Middle East tensions persist, we see the potential for greater market volatility," adding, "Since the uncertainty of war has not been clearly resolved, investors should keep in mind the possibility of short-term profit-taking in rising sectors."