Foreign investors net bought 3.839 trillion won in KOSDAQ stocks from May 4 to July 24, while individuals net sold 1.852 trillion won. The accumulation occurred as KOSDAQ fell from 1210 to 750, with foreign investors treating the decline as a buying opportunity amid individual investor selling driven by margin calls. Foreign ownership in KOSDAQ expanded from an average of 8–9% to 12.33% by the end of June and currently stands at 12.02%, the highest level in seven years.
KOSDAQ and KOSPI Post Gains on Trading Day
KOSPI rose 0.97% to 6755.7, while KOSDAQ rose 2.22% to 764.8. In the KOSPI market, foreign investors net sold 2.8808 trillion won, but individuals and institutions net bought 1.9792 trillion won and 858.8 billion won respectively. Samsung Electronics rose 1.80% and SK Hynix rose 3.24%. In the KOSDAQ market, institutional investors net bought 272.8 billion won, pushing the index up more than 2%. Alteogen rose 3.80%, while secondary battery companies Ecopro and Ecopro BM rose 3.20% and 2.03% respectively. Semiconductor equipment stocks Jusung Engineering and Wonik IPS rose 5–6%.
Foreign Investors Accumulate KOSDAQ Stocks During May 4–July 24 Correction
During the May 4 to July 24 period, KOSDAQ fell from 1210 to 750. Average daily trading volume dropped from over 25 trillion won to 5 trillion won. Individual investors net sold 1.852 trillion won worth of KOSDAQ stocks during this period, while foreign investors net bought 3.839 trillion won. Foreign ownership in KOSDAQ expanded by approximately 4 percentage points, rising from an average of 8–9% to 12.33% by the end of June. The current level of 12.02% is the highest in seven years. Credit balance in KOSDAQ shrank from 12 trillion won to below 7 trillion won as margin call selling occurred during the index decline.
Semiconductor Parts and Materials Stocks See Largest Foreign Ownership Increases
Foreign investors focused accumulation on semiconductor parts and materials companies within the KOSDAQ Global 66 stocks. ISC, a semiconductor test socket company, saw its stock price fall 45.62% from 247,500 won to 134,600 won while foreign ownership increased 11.15 percentage points. Eotech, a semiconductor equipment company, saw its stock price fall 37.16% from 475,000 won to 298,500 won while foreign ownership increased 8.60 percentage points. Other semiconductor-related stocks with foreign ownership increases included Leeno Industrial (+9.59 percentage points), Soulbrain (+7.50 percentage points), Komico (+6.05 percentage points), Seoul Semiconductor (+5.37 percentage points), Park Systems (+4.89 percentage points), and TCK (+4.15 percentage points). Outside the semiconductor sector, shipbuilding equipment company Sungkwang Bend saw foreign ownership increase 3.74 percentage points as its stock price fell 39.35% from 46,500 won to 28,200 won. Entertainment stocks JYP Entertainment (+2.97 percentage points) and SM (+1.80 percentage points) also saw small foreign ownership increases.
Foreign Investors Reduce Exposure to Infrastructure and Secondary Battery Stocks
Foreign investors sold stocks that had risen in price. Jusung Engineering saw foreign ownership decrease 6.41 percentage points while its stock price rose 11.37% from early May. TESS saw foreign ownership decrease 4.01 percentage points as its stock price surged from 86,700 won to 136,100 won. In infrastructure and secondary battery sectors, foreign investors sold aggressively. Transformer company Jeryung Electric saw foreign ownership decrease 4.05 percentage points as its stock price fell from 91,500 won to 44,800 won. Secondary battery-related company PNT saw foreign ownership decrease 1.49 percentage points as its stock price fell 49.40% from 58,000 won to 29,350 won. Platform and domestic demand stocks also saw foreign ownership decreases: CJ ENM (-3.95 percentage points), Kakao Games (-2.39 percentage points), and Com2uS (-1.13 percentage points). Large-cap stocks Ecopro and Ecopro BM saw stock price declines exceeding 40% but foreign ownership changes remained at 0–1 percentage point levels. Large biotech stocks Alteogen and Legochem Biosciences also saw stock price declines without significant foreign ownership changes.
FAQ
What did foreign investors buy in KOSDAQ from May 4 to July 24?
Foreign investors net bought 3.839 trillion won worth of KOSDAQ stocks during the May 4 to July 24 period, focusing on semiconductor parts and materials companies. ISC saw foreign ownership increase 11.15 percentage points, Eotech saw an increase of 8.60 percentage points, and Leeno Industrial saw an increase of 9.59 percentage points.
Why did foreign ownership in KOSDAQ reach a seven-year high?
Foreign ownership in KOSDAQ expanded from an average of 8–9% to 12.33% by the end of June as foreign investors accumulated stocks during the index correction from 1210 to 750. Individual investors net sold 1.852 trillion won during this period due to margin calls, while foreign investors net bought 3.839 trillion won, treating the decline as a buying opportunity.
Which sectors did foreign investors avoid in KOSDAQ during the correction?
Foreign investors reduced exposure to infrastructure and secondary battery stocks. Jeryung Electric saw foreign ownership decrease 4.05 percentage points, PNT saw a decrease of 1.49 percentage points, and platform stocks including CJ ENM (-3.95 percentage points) and Kakao Games (-2.39 percentage points) also saw foreign ownership declines.
