Individual investors in South Korea net purchased 13.4585 trillion won of Samsung Electronics and SK Hynix stocks during the 10 trading days from July 1 to July 14, despite both stocks declining approximately 19-25% from early June levels. This buying volume is only 1% lower than the 13.6513 trillion won individuals net purchased during June 1-15, indicating sustained retail demand even as prices fell sharply. The sustained buying occurred as foreign investors net sold 13.1061 trillion won of the two stocks during July 1-14, with individual investors absorbing most of the foreign outflow. Securities industry analysts attribute the price drops to panic selling driven by leverage product volatility rather than deterioration in semiconductor cycle fundamentals, supporting the validity of individual investors' dip-buying strategy in the Korean stock market's leading semiconductor names.
Individual Investors Maintain Buying Pace Across June and July Trading Periods
According to Korea Exchange data, individual investors net purchased 13.4585 trillion won of Samsung Electronics and SK Hynix during the 10 trading days from July 1 to July 14. This represents only a 1% decrease from the 13.6513 trillion won individuals net purchased during the 10 trading days from June 1 to June 15. Samsung Electronics ranked as the number one stock for individual net buying during June 1-15, while SK Hynix held the top position during July 1-14.
When single-stock leveraged ETFs are included, individual net buying volume is significantly larger. During June 1-15, individuals net purchased 2.2051 trillion won of KODEX Samsung Electronics Single Stock Leverage and KODEX SK Hynix Single Stock Leverage ETFs. During July 1-14, individual net purchases of these two ETFs totaled 1.9275 trillion won.
Samsung Electronics and SK Hynix Record Double-Digit Percentage Declines
Samsung Electronics stock price fell from 349,000 won on June 1 to 263,000 won on July 14, a decline of 24.64% over the one-and-a-half-month period. The stock is down 29.77% from its peak of 374,500 won. During the same period, SK Hynix stock declined 19.04% from 2.363 million won to 1.913 million won. Compared to its peak of 2.987 million won, SK Hynix has fallen 35.96%.
Foreign Investors Net Sell Over 13 Trillion Won During July 1-14
Foreign investors ranked Samsung Electronics and SK Hynix as their top two net-sold stocks during both periods examined. From June 1 to June 15, foreign investors net sold 16.0109 trillion won of the two stocks. During July 1-14, foreign net sales totaled 13.1061 trillion won. Foreign investors also net sold single-stock leveraged ETFs, disposing of 36.5 billion won during June 1-15 and 92.7 billion won during July 1-14.
Samsung Securities Analyst Attributes Decline to Leverage Product Volatility
The securities industry supports individual investors' accumulation of semiconductor leading stocks, viewing the recent price drop as unrelated to fundamental deterioration. Market volatility has caused some exits, but this has not altered the semiconductor cycle itself. Some securities research centers have lowered operating profit forecasts for SK Hynix while maintaining investment opinions and target prices.
Lee Jong-wook, team leader at Samsung Securities, stated: "The background to panic selling as intraday losses expanded was that the increased proportion of leverage products further amplified volatility in the underlying stocks, but it is necessary to clarify that this is volatility derived from market structure, not a signal representing the memory semiconductor industry itself." Lee emphasized: "If we remove the noise of volatility, we judge that this phase is merely a correction and the essence of the semiconductor cycle has not changed."
Lee added: "Separately from the sharp decline in memory semiconductor stock prices, no signal has been confirmed that AI infrastructure investment itself is contracting. Rather, on July 13, Meta announced it would expand its investment in the Hyperion data center in Louisiana from the existing $27 billion to over $50 billion."
FAQ
Q: How much did individual investors net purchase of Samsung Electronics and SK Hynix during July 1-14?
A: Individual investors net purchased 13.4585 trillion won of Samsung Electronics and SK Hynix stocks during the 10 trading days from July 1 to July 14, according to Korea Exchange data.
Q: What was the percentage decline in Samsung Electronics and SK Hynix stock prices?
A: Samsung Electronics fell 24.64% from 349,000 won on June 1 to 263,000 won on July 14. SK Hynix declined 19.04% from 2.363 million won to 1.913 million won during the same period.
Q: Why do securities analysts view individual investors' buying strategy as valid despite the price declines?
A: Samsung Securities team leader Lee Jong-wook stated the price drops resulted from panic selling driven by leverage product volatility rather than deterioration in semiconductor cycle fundamentals, supporting the validity of dip-buying in semiconductor leading stocks.
