The KOSPI is displayed on a screen at the dealing room of Woori Bank in Seoul, Friday. The index closed at 5,808.53, up 131.28 points, or 2.31 percent, from the previous session, breaking above the 5,800-point mark to set another record high. Yonhap
Foreign investors are taking in profits by net selling more than 9 trillion won ($6.2 billion) worth of shares as the KOSPI continues to hit record highs this year, in contrast to strong institutional buying, market analysts said Sunday.
They said the sharp rise in stock prices appears to have prompted foreign investors to trim positions and lock in gains.
According to the Korea Exchange, foreign investors recorded net sales of 9.16 trillion won on the main board from the start of the year through Friday, almost double the 4.66 trillion won in net sales logged for all of last year.
The bulk of the selling was concentrated in semiconductor blue chips. Foreign investors were the biggest net sellers of Samsung Electronics, offloading 9.55 trillion won worth of shares.
The stock has surged 59 percent this year alone and topped 190,000 won for the first time on Thursday, with the rally seemingly providing an opportunity for profit-taking.
Net sales of SK hynix were also high at 5.97 trillion won.
Foreign funds also reduced exposure to several major blue-chip stocks. Net selling in Hyundai Motor reached 5.29 trillion won, as the stock rallied earlier in the year on optimism over its robotics-related prospects.
They likewise posted sizable net outflows in SK Square at 637 billion won, Hyundai Mobis at 609 billion won and Hyundai Glovis at 542 billion won.
Lee Kyung-min, an analyst at Daishin Securities, said the selloff should not be interpreted as a sign that overseas investors are betting on a decline in the KOSPI.
Source: Korea Times News
