In the domestic stock market, foreign investors recorded the largest net selling on record. On the 29th alone, they posted net selling of 7.7 trillion won, centered on the electric and electronics sector including Samsung Electronics and SK hynix. Still, despite the massive foreign sell-off, the KOSPI closed slightly lower. It is seen as rotation into sectors outside semiconductors.
According to the Korea Exchange (KRX), foreign investors' net selling on the Korea Exchange's main board that day alone totaled 7.7 trillion won. It broke the previous all-time high net selling set on the 27th in Feb. at 7 trillion won. Centered on the electric and electronics sector, foreigners' cumulative net selling over the past seven trading days reached 25 trillion won.
By stock, they sold the domestic market's "two-tops," Samsung Electronics and SK hynix, the most. That day, foreigners posted net selling of 3.8 trillion won in Samsung Electronics and 3.3 trillion won in SK hynix. The two stocks, which opened lower, briefly pared losses in the afternoon. It was when news came that the government, through the "three mega projects national briefing," would create a second semiconductor production base in the Honam region and push a total investment of 800 trillion won. However, as sell orders poured in late in the session, Samsung Electronics fell nearly 5%.
Experts analyze that foreigners dumped semiconductor stocks largely because of negatives affecting global tech stocks, such as Apple's product price hikes and the delay of OpenAI's initial public offering (IPO). As the two stocks surged this year, the net selling amount hit an all-time high.
Experts also said the government's released large-scale investment plan to build a second semiconductor production base in the Honam region affected sentiment toward semiconductor stocks.
However, the shock to the market from the massive foreign net selling streak was not large. Instead, a "rotation" emerged into other sectors that had not seen fund inflows due to the prolonged concentration in semiconductors.
On the Korea Exchange's main board that day, 820 stocks rose, while only 88 fell. Secondary battery names such as LG Energy Solution and Samsung SDI were strong, and large-cap stocks such as Hyundai Motor and Samsung Biologics generally advanced.