Foreign investors 24consecutive business days of net selling in the KOSPI 7trillion 6,000billion won, 2quarterly earnings are the turning point
Foreign investors sold a net 7days last month through 11this month, 24consecutively in the KOSPI, for a total of 7trillion 6,000billion won. The securities industry views the move as a short-term technical factor and is watching the 2quarterly earnings announcements as the turning point for future supply and demand.
Foreign investors sold a net 7days last month through 11this month, 24consecutively in the KOSPI, for a total of 7trillion 6,000billion won. Investors are seeking to determine at the 2quarterly earnings announcements how this trend will affect future supply and demand.
Na Jeong-hwan, a researcher at NH Investment & Securities, said he believes the selling trend was driven by technical factors rather than fundamental deterioration. He explained that selling to adjust portfolio weightings, driven by efforts to raise funds for a SpaceX listing and a rally related to artificial intelligence, acted in combination.
It was pointed out that international index rebalancing affected the foreign share of the Korean market. In the process, some investors began selling to reduce their exposure.
The view among brokerage firms is that, rather than short-term supply and demand,2quarterly earnings will determine the future direction. Brokerage firms see the possibility that foreign investors’ trading patterns may change after earnings announcements.
This selling trend translated into temporary selling pressure across the KOSPI. However, some in brokerage circles assess that there are no signs of significant damage to fundamentals.
Investors are monitoring the scale of foreign investors’ net selling and2the schedule of quarterly earnings announcements together. A trend is being observed in which changes in supply and demand are checked first for stocks that have announced their earnings.
Sources: 연합인포맥스
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