Foreign investors posted net sales of more than 44 trillion won on the Korea Exchange's KOSPI market this month, marking an all-time high. In contrast, they bought more than 2.8 trillion won on the KOSDAQ market over the same period, the largest net purchase on record.
On the KOSPI market, a wave of profit-taking hit after a short-term surge in semiconductor stocks, while the KOSDAQ market appears to have attracted foreign funds on expectations for the launch of the Public Growth Fund.
According to the Korea Exchange (KRX) on the 31st, foreigners recorded net sales of 44.715 trillion won on the KOSPI market from the 1st to the 29th of this month. That is the largest monthly KOSPI net selling by foreigners on record. The previous high was net sales of 35.7477 trillion won in March, with the record broken in just two months.
Foreigners logged 16 consecutive trading days of net selling on the KOSPI market from the 7th to the 29th of this month. This is the longest selling streak since 2009, when the stock market wobbled under the fallout from the global financial crisis. That year, foreigners posted 17 straight trading days of net selling from Feb. 10 to Mar. 4.
Individuals moved in the exact opposite direction of foreigners. This month, individuals posted net purchases of 35.094 trillion won on the KOSPI market. That is also the largest monthly KOSPI net buying by individuals on record.
The foreign exit from the KOSPI is seen as largely profit-taking after Korea's stock market surged this year. In particular, concerns about a short-term spike in semiconductor stocks and a potential peak-out in the cycle combined to concentrate selling in Samsung Electronics and SK hynix.
So far this year, the KOSPI index has jumped 101%. Over the same period, Samsung Electronics and SK hynix shares rose 164% and 258%, respectively.
The top two KOSPI names foreigners net sold this month were SK hynix and Samsung Electronics. Foreigners net sold 20.716 trillion won of SK hynix and 16.027 trillion won of Samsung Electronics. The combined net sales of the two accounted for 82% of total net sales on the KOSPI market.
Foreign buying shifted to the KOSDAQ market. From the start of the month through the 29th, foreigners' net purchases on KOSDAQ totaled 2.837 trillion won. That is the largest monthly amount on record. The previous record was 2.7923 trillion won in July 2023.
The launch of the Public Growth Fund is cited as the backdrop for foreigners scooping up KOSDAQ-listed shares. The Public Participation Growth Fund will pool 600 billion won in public funds and 120 billion won in fiscal funds to create a master fund, which will be run by investing in 10 sub-funds. A significant portion of the money is designed to be concentrated in innovative companies, such as those listed on KOSDAQ via the technology exception track.
The KOSDAQ stock foreigners bought the most this month was FADU, with net purchases totaling 437 billion won. Next were EcoPro BM at 155 billion won, ABL Bio at 125 billion won, and EO Technics at 121 billion won.