Foreign investors returned to Korean stocks on the 8th-9th with net purchases totaling approximately 1.1374 trillion won, yet continued selling Samsung Electronics and SK Hynix during this period. The buying spree followed 13 consecutive trading days of net selling totaling 49.2 trillion won from the 18th of last month through the 7th. Market analysts interpret the pattern as sector rotation, with foreign capital moving from large-cap memory chipmakers toward AI infrastructure and component stocks amid concerns about semiconductor sector peak-out and elevated valuations.
Foreign Investors Sold Samsung Electronics and SK Hynix While Buying Samsung Electro-Mechanics
According to Korea Exchange and Nextrade, foreign investors net sold SK Hynix for 316.7 billion won and Samsung Electronics for 252 billion won over the two-day period, ranking first and second in net selling respectively. Samsung Electro-Mechanics topped the net buying list at 405.8 billion won. Other significant purchases included SK Square (242 billion won), LG Innotek (218.1 billion won), Samsung SDI (93.7 billion won), and Hyundai Motor (92.8 billion won).
Foreign investors also acquired HD Hyundai Heavy Industries (79.6 billion won), Hanmi Semiconductor (73.2 billion won), LS Electric (60.1 billion won), Samsung Heavy Industries (58.8 billion won), Doosan Enerbility (57.7 billion won), SK Telecom (52.5 billion won), Daeduck Electronics (50.6 billion won), and POSCO Holdings (49.1 billion won). The buying list heavily featured AI server substrates and components, HBM equipment manufacturers, and power infrastructure companies expected to benefit from AI data center expansion.
During the 13 trading days from the 18th of last month through the 7th, SK Hynix ranked first in net selling at 22.8539 trillion won, followed by Samsung Electronics at 19.3355 trillion won.
Analysts Identify Sector Rotation from Memory Chips to AI Infrastructure Stocks
Market analysts note that some global investors are reducing their positions in large-cap memory stocks to reflect potential momentum slowdown, amid excessively high expectations for the semiconductor sector. However, the broader AI investment expansion trend remains intact, leading to fund reallocation toward AI components, power equipment, and shipbuilding sectors with relatively lower valuation burdens or expected benefits.
Christy, global investment strategist at Franklin Templeton, stated in a report on the 6th: "The Korean stock market is like a situation where there are semiconductor companies like 'dazzling peacocks' and 'Korean tigers' that are still sleeping together. Selectively hold peacocks, but now is the time to go out and find tigers." Christy added: "The leveraged fund flows of Korean retail investors have now become a structural risk in the market beyond a simple sentiment indicator. Risk management standards should be strengthened and hedging devices should be prepared for semiconductor holdings where buying has been heavily concentrated."
FAQ
What did foreign investors buy most heavily in Korean stocks on the 8th-9th?
Foreign investors net bought Samsung Electro-Mechanics most heavily at 405.8 billion won, followed by SK Square at 242 billion won and LG Innotek at 218.1 billion won.
Why did foreign investors sell Samsung Electronics and SK Hynix while buying other stocks?
Market analysts interpret this as sector rotation, with foreign investors reducing positions in large-cap memory chipmakers amid peak-out concerns and elevated valuations, while reallocating funds to AI infrastructure, components, and power equipment stocks with lower valuation burdens.
