KOSPI Rebounds as Foreign Investors Snap up Shares

Foreign investors snapped up more than W6 trillion worth of Korean shares in October and November of this year, spearheading a rebound of the benchmark Korea Composite Stock Price Index (US$1=W1,319). 

Foreign investors appear to have gone bargain-hunting for blue-chip KOSPI stocks like Samsung Electronics. 

According to the Korea Exchange on Wednesday, foreign investors bought W6.07 trillion worth of Korean stocks from Oct. 1 until Nov. 29, though retail investors sold off W6.27 trillion worth of shares. Institutional investors also purchased W3 billion worth. 

The buying spree sent the KOSPI up six percent in October and November after it plunged more than 13 percent in September. Samsung Electronics was their favorite issue with W1.9 trillion. Second was LG Energy Solution (W1.15 trillion), followed by Samsung SDI (W1.02 trillion) and SK Hynix (W620.6 billion). 

Foreign investors preferred semiconductor and electric vehicle battery shares. 

Samsung Electronics' share price rose 14 percent over the past two months and returned to the W60,000 level on Nov. 7. 

But analysts do not expect the buying spree to last much longer. Kim Ji-san at Kiwoom Securities said, "Foreign investors are expected to repeat the buying and selling pattern until the first quarter of next year with the index moving in a boxed range."