The KOSPI index closed at 6690.62 on the 24th, down 1.9% from 6820.60 on the 16th, failing to sustain a recovery above the 7000 level during the week. Individual investors and foreigners net purchased over 2 trillion won each, while institutions net sold over 4 trillion won. The index briefly reached 7096.89 on the 23rd, raising expectations of a 7000-level recovery, but fell back to the 6000 range the following day.
Individual Investors Net Purchase 2.0123 Trillion Won in Semiconductor Stocks
Individual investors net purchased 2.0123 trillion won during the week, maintaining buying momentum at a similar scale to the previous week. SK Hynix recorded the largest net purchase transaction value at 1.4125 trillion won. Samsung Electronics and SK Square followed with 377.6 billion won and 313.1 billion won respectively.
Institutions Net Sell 4.8257 Trillion Won Led by Financial Investment
Institutions net sold 4.8257 trillion won during the week. Financial investment entities, which tend toward mechanical trading patterns, sold 4.7013 trillion won. Pension funds, primarily composed of the National Pension Service, net purchased 202.2 billion won. Financial investment's top purchases included Korea Aerospace Industries with 71.6 billion won, KB Financial with 65.6 billion won, and Hana Financial Group with 52.8 billion won. Pension funds net purchased SK Innovation at 102.1 billion won, SK Telecom at 96.2 billion won, and Naver at 79.3 billion won.
Foreigners Net Purchase 2.8134 Trillion Won Favoring Semiconductor Giants
Foreign investors net purchased 2.8134 trillion won, showing similar preferences to individual investors for semiconductor stocks. SK Hynix recorded the highest net purchase transaction value at 999.1 billion won. Samsung Electronics followed with 855.6 billion won, and Samsung Electronics preferred shares at 131.8 billion won.
Analysts Cite Interest Rate Stability as Key Rebound Condition
Cho Byung-hyun, a researcher at Daol Investment & Securities, stated that "for a trend-based rebound, confidence in investment sustainability and expectations for interest rate stabilization need to form simultaneously," adding that "the driving force of the rebound will still be in existing leading stocks led by semiconductors." Lee Jae-won, a researcher at Yuanta Securities, explained that "the July index plunge was largely due to heightened expectations, leading stock deleveraging, and rebalancing selling from single-stock leveraged ETFs appearing simultaneously rather than a collapse in semiconductor demand," noting that "this week saw an index rebound through foreign bargain hunting and confirmation of Alphabet earnings."
FAQ
What caused the KOSPI index to fall below 7000 on the 24th?
The KOSPI closed at 6690.62 on the 24th, down 1.9% from 6820.60 on the 16th. Institutional net selling of 4.8257 trillion won outweighed net purchases by individual investors (2.0123 trillion won) and foreigners (2.8134 trillion won), preventing the index from sustaining the 7000 level it briefly reached on the 23rd.
Which stocks did individual investors and foreigners purchase most during the week?
Both individual investors and foreign investors favored semiconductor stocks. SK Hynix recorded the highest net purchase transaction values—1.4125 trillion won from individuals and 999.1 billion won from foreigners. Samsung Electronics was the second-most purchased stock by both groups, with individuals buying 377.6 billion won and foreigners buying 855.6 billion won.
