Individual and foreign investors in the Korean stock market recorded losses on all their top 10 net-buy stocks this month until the previous day, according to data from the Korea Exchange. The losses occurred amid a sharp decline in domestic stock indices this month. This represents an unusual situation where both investor groups simultaneously suffered losses across their most-purchased securities, departing from typical market patterns where their returns usually diverge even during volatile periods.
Individual Investors Record 21.28% Average Loss on Top Net-Buy Stocks
Individual investors purchased SK Hynix worth 11.0262 trillion won and Samsung Electronics worth 6.0386 trillion won as their top two net-buy stocks this month until the previous day. Additional top purchases included KODEX SK Hynix Single Stock Leverage (1.5815 trillion won), KODEX Leverage (912 billion won), Samsung Electro-Mechanics (841.9 billion won), TIGER SK Hynix Single Stock Leverage (638.1 billion won), KODEX KOSDAQ150 Leverage (588.2 billion won), KODEX 200 (468.1 billion won), KODEX Samsung Electronics Single Stock Leverage (450 billion won), and KODEX 200 Target Weekly Covered Call (429.1 billion won).
Individual investors failed to generate profits from any of their top 10 net-buy stocks. SK Hynix closed at 1.845 million won on the previous day, while individual investors' average purchase price reached 2.218669 million won, approximately 370,000 won higher, resulting in a loss of approximately 17% based on the current stock price. Samsung Electronics' average purchase price stood at 292,864 won, significantly exceeding the previous day's closing price of 254,500 won. Other holdings including KODEX SK Hynix Single Stock Leverage, KODEX Leverage, Samsung Electro-Mechanics, TIGER SK Hynix Single Stock Leverage, and KODEX Samsung Electronics Single Stock Leverage recorded losses ranging from over 20% to nearly 40%. The average return rate for individual investors' top 10 net-buy stocks reached -21.28% based on the previous day's closing prices.
Foreign Investors Post 8.77% Average Loss Across Diversified Portfolio
Foreign investors pursued a different strategy from individual investors who concentrated on semiconductor leaders and leverage ETFs, focusing instead on LG Innotek, DB HiTek, Lino Industrial, Hanmi Semiconductor, ISC, Samsung Electro-Mechanics, Hyundai Motor, Hyundai Rotem, EOTechnics, and NAVER. All 10 stocks recorded negative returns. The average return rate for these 10 stocks reached -8.77% compared to the average purchase price.
Both individual and foreign investors typically show divergent returns even when market volatility increases due to opposing supply and demand patterns. This month presented an unusual situation where both groups failed to generate returns amid a comprehensive index decline. Individual investors who concentrated investments in semiconductors and foreign investors who diversified portfolios across various sectors both failed to avoid downward market pressure.
Institutional Investors Achieve Partial Gains Through Financial Stock Holdings
Institutional investors demonstrated relatively better performance. While they recorded approximately 24% losses on SK Square, their most-purchased stock this month with nearly 1 trillion won in net buying, financial stocks including KB Financial, Shinhan Financial, S-Oil, and Hana Financial Group defended their portfolio. Institutional investors generated profits from 4 out of their top 10 net-buy stocks. Their average return rate reached -6.20%.
FAQ
What losses did individual investors record on Korean stocks this month?
Individual investors in the Korean stock market recorded an average loss of 21.28% on their top 10 net-buy stocks this month until the previous day, according to Korea Exchange data. All 10 stocks showed negative returns, with SK Hynix purchased at an average price of 2.218669 million won closing at 1.845 million won, and Samsung Electronics purchased at 292,864 won closing at 254,500 won.
How did foreign investors perform on their Korean stock purchases this month?
Foreign investors recorded an average loss of 8.77% on their top 10 net-buy stocks this month. Despite pursuing a diversified strategy across LG Innotek, DB HiTek, Lino Industrial, Hanmi Semiconductor, ISC, Samsung Electro-Mechanics, Hyundai Motor, Hyundai Rotem, EOTechnics, and NAVER, all 10 stocks showed negative returns.
