Foreign investors net sold over 12 trillion won in Korean stocks during the 1st-16th while simultaneously net buying nearly 600 billion won in exchange-traded funds (ETFs), according to Korea Exchange and KOSCOM CHECK data released on the 19th. The contrarian trading pattern occurred as the KOSPI index declined from 8,476.48 on the 30th of the previous month to 6,820.60 on the 16th, with foreign selling pressure acting as a downward force on domestic markets. Industry sources attributed the divergent ETF purchases to a portfolio risk management strategy rather than directional market bets.
Foreign Investors Net Sold 12 Trillion Won in Korean Stocks During 1st-16th
During the 1st-16th, foreign investors net sold 12.1022 trillion won on the securities market and 338.1 billion won on the KOSDAQ market. On a daily basis, 8 out of 12 trading days showed net selling on the securities market. Foreign investors maintained a selling streak for 5 consecutive trading days from the 1st through the 7th. On the KOSDAQ market, 7 out of 12 trading days recorded net selling. During the 5-day consecutive selling period from the 1st-7th, the 3rd was the only day when stock prices rose by 5.76%.
Foreign Investors Net Bought 595.7 Billion Won in ETFs During Same Period
Foreign investors net purchased 593.7 billion won worth of domestic ETFs during the 1st-16th. On a daily basis, buying dominated on 10 trading days, excluding the 1st (-135.4 billion won) and the 6th (-293.1 billion won). The contrasting behavior between stock selling and ETF buying reflected a risk management approach rather than a directional market position, according to a financial investment industry official.
KODEX Leverage and KODEX 200 Led ETF Net Purchases
KODEX Leverage recorded the highest foreign net purchases at 195 billion won during the period, ranking 9th among all domestic securities (KOSPI + KOSDAQ + ETF) for foreign net buying. KODEX 200 came second among ETFs with 180.6 billion won in net purchases, ranking 10th overall. Other heavily purchased ETFs included KODEX 200 Futures Inverse 2X (130 billion won), TIGER US Philadelphia Semiconductor NASDAQ (102 billion won), TIGER US NASDAQ 100 Target Daily Covered Call (62.7 billion won), and TIGER Samsung Electronics Single Stock Leverage (61.9 billion won). Both KODEX Leverage and KODEX 200 use the KOSPI 200 index as their underlying benchmark.
Single-Stock Leverage Products Appeared in Both Buy and Sell Rankings
Among domestic equity ETFs, both products tracking the KOSPI 200 index and inverse products that profit from index declines appeared in the top net purchase rankings. KODEX SK Hynix Single Stock Leverage (-79 billion won), TIGER US S&P 500 (-48.5 billion won), TIGER SK Hynix Single Stock Leverage (-46.4 billion won), and KODEX Samsung Electronics Single Stock Leverage (-36.5 billion won) ranked among the top ETF net sales by foreign investors. Single-stock leverage products appeared in both the net purchase and net sale top rankings. During the 1st-16th, foreign investors net purchased 22.7 billion won across 7 Samsung Electronics single-stock leverage products while net selling 122.1 billion won across 7 SK Hynix single-stock leverage products.
FAQ
How much did foreign investors net sell in Korean stocks during the 1st-16th?
Foreign investors net sold 12.1022 trillion won on the securities market and 338.1 billion won on the KOSDAQ market during the 1st-16th, according to Korea Exchange and KOSCOM CHECK data released on the 19th.
Which ETF had the highest foreign net purchases during the 1st-16th?
KODEX Leverage recorded the highest foreign net purchases at 195 billion won during the 1st-16th, ranking 9th among all domestic securities for foreign net buying. KODEX 200 came second among ETFs with 180.6 billion won in net purchases.
