Korean Stocks See Largest Foreign Buying in Two Months

TechFlow News, July 23. According to South Korean media "Seoul Economic Daily", as foreign investors recorded the largest net purchase amount in about two months, expectations for a rebound in the South Korean KOSPI index are heating up. South Korean brokerages believe that compared to single-day market performance, whether foreign capital flows have shifted to sustained net inflows is the key factor determining the future trend of Korean stocks.

Data from the Korea Exchange on July 23 shows that foreign investors net bought 2.6211 trillion won in the Korean main board market the previous day, setting a record high in nearly two months. Driven by foreign buying, the KOSPI reclaimed the 7,000-point level during trading for the first time in four trading sessions, and triggered the program trading suspension mechanism for the 20th time this year. However, in the afternoon, institutional and individual investors engaged in profit-taking, causing the index to give back most of its gains; it ultimately rose only 0.74% to close at 6,797.70 points.

Kim Seok-hwan, a researcher at Mirae Asset Securities, stated that although foreign investors made significant net purchases, individual investors and financial institutions concentrated on selling semiconductor weighted stocks to lock in profits, leading to a significant narrowing of the index's gains. On the day, individual investors and institutional investors net sold 1.2177 trillion won and 1.3961 trillion won respectively. (Jin10)