Screens show the KOSPI index and currency exchange rates in a dealing room at Hana Bank’s headquarters in central Seoul on Tuesday. Yonhap
Data on Tuesday showed foreign investors were buying tech and auto shares on the local stock market, possibly becoming net buyers after a month of turning to net sellers.
Foreign investors bought a net 1.9 trillion won ($1.3 billion) in the broader Korea Stock Price Index (KOSPI) market from Dec. 1 through Monday, according to data from the Korea Exchange, the country’s main exchange operator.
This marks a sharp change from November, when they sold a net 14.4 trillion won, the data showed.
Foreigners continued their buying on Tuesday, with a net purchase of 373.2 billion won worth of local stocks as of 11:10 a.m.
Offshore investors appeared to focus primarily on large-cap semiconductor makers and auto companies.
SK Hynix was their top pick, buying a net worth of 824.7 billion won. Foreigners also bought 426.1 billion won worth of preferred shares in Samsung Electronics and 322.1 billion won worth of Hyundai Motor shares.
“Foreigners and institutions have become net buyers and are leading the year-end stock rally, driven by favorable factors for the US stock market, including recent progress in AI-related stocks,” said Han Ji-young, an analyst at Kiwoom Securities Co.
On Monday (local time), shares of US chipmaker Micron Technology hit an all-time high of $230.55 after the company signaled strong demand for memory chips used in AI infrastructure.
Local carmakers have also come into the spotlight as a trade deal struck between Seoul and Washington in October reduces tariff uncertainties on the sector, analysts said.
“The local stock market is likely to continue rising on the back of continued semiconductor momentum and growing anticipation of a Santa Claus rally,” Han said.