With the National Pension Service resuming rebalancing (adjusting asset weights) this month, it appears to be a net buyer for the first time this year on a monthly basis. Concerns over the National Pension Service's "sell-off bomb" seem to have eased.
According to the Korea Exchange (KRX) on the 26th, pension funds including the National Pension Service posted a net purchase of 68.4 billion won in the KOSPI market from early this month through the 24th.
Pension funds continued net selling in the KOSPI market from January to June this year. After net selling 1.8911 trillion won in January, they were also net sellers in February (681.6 billion won), March (764.8 billion won), April (896.1 billion won), May (2.1617 trillion won), and June (2.337 trillion won).
In the first half, net selling accounted for more than half of the trading days each month. By contrast, this month net selling has been limited to six trading days. With five trading days still left until next month, there is a possibility of reverting to net selling, but even then, projections suggest the scale would remain small.
The top net buy this month was SK hynix(000660) (425.8 billion won), marking the second straight month it was the most purchased. No. 2 was SK Innovation(096770) (224.7 billion won), followed by S-OIL (174.4 billion won), DB Insurance(005830) (109.4 billion won), Celltrion(068270) (95.3 billion won), and Korean Air Lines(003490) (89.9 billion won).
The top net sell was SK Square(402340) (575.7 billion won). Nos. 2, 3, and 5 were Samsung Electro-Mechanics(009150) (313.6 billion won), Samsung Life Insurance(032830) (123.8 billion won), and Samsung Electronics(005930) (111.5 billion won), while No. 4 was LG Innotek(011070) (111.9 billion won).
With the National Pension Service's deferral of domestic stock rebalancing ending late last month, concerns were raised that a "sell-off bomb" of up to 74 trillion won would begin this month.
Securities analysts say the recent supply-demand snarls in the domestic stock market and a sharp correction phase likely played a role.
As the KOSPI index fell sharply this month, it is estimated that the valuation of the National Pension Service's domestic stocks declined, naturally reducing the domestic stock weight as well.
Addressing earlier concerns over a pension fund "sell-off bomb," National Pension Service (NPS) Chairman Kim Sung-joo countered that "a large-scale sell-off in a short period is impossible," and Ministry of Health and Welfare Minister Jung Eun-kyeong also said, "Even if rebalancing occurs, we will closely monitor the management process to minimize market impact."