Seoul: Foreign investors sold more than 10 trillion won (US$6.6 billion) worth of shares in Samsung Electronics Co. and SK hynix Inc. last week, extending their net-selling streak in the South Korean stock market to 12 trading sessions, data showed Monday.
According to Yonhap News Agency, foreigners offloaded a net 5.33 trillion won worth of SK hynix shares and 5.26 trillion won worth of Samsung Electronics shares during the week beginning May 18. The data from the Korea Exchange and Yonhap Infomax revealed that the combined net sales of these two market leaders accounted for 73 percent of foreigners' total net selling of Korean stocks, which totaled 14.45 trillion won over the cited period.
The selling trend has persisted over the past 12 trading sessions since May 7, when foreign investors turned net sellers. During this period, foreigners sold a net 19.53 trillion won worth of SK hynix shares and 18.87 trillion won worth of Samsung Electronics shares, making up 82.9 percent of their total net selling of 46.34 trillion won.
Last week, other heavily sold stocks by foreign investors included Hyundai Mobis Co., Hyundai Motor Co., LG Electronics Inc., and Samsung Electro-Mechanics Co. However, offshore investors increased their purchases of robotics and energy storage system (ESS) stocks. Notably, foreigners bought a net 370 billion won worth of Doosan Robotics Inc. shares and 148.9 billion won worth of Samsung SDI Co. shares on the benchmark Korea Composite Stock Price Index (KOSPI) last week.
On the secondary Korea Securities Dealers Automated Quotations (KOSDAQ) market, foreigners purchased a net 1.29 trillion won worth of shares last week. This included 155.6 billion won in Fadu Inc., a fabless company specializing in storage systems for artificial intelligence (AI) data centers, and 128 billion won in Seojin System Co., an ESS and telecom equipment maker. The shift in investment came amid strong growth expectations for the global robotics and ESS markets driven by demand related to physical AI and AI data centers.
Analysts have suggested that the recent foreign selloff reflects portfolio rebalancing following sharp gains in semiconductor shares, with funds moving into sectors viewed as having greater upside potential. "Foreign investors may have responded with selling as the share of Korean semiconductor stocks in their portfolios increased sharply due to steep price gains," said Kang Jin-hyuk, an analyst at Shinhan Securities. "They appear to have shifted funds to other stocks where earnings are improving but share prices remain relatively low."