Foreign investors 70net selling of trillion won sends KOSPI 1to 2000forecast emerges
As the KOSPI has risen to a high level since the start of the year, foreign investors have continued large-scale selling. In the securities market, foreign investors net sold approximately 7from last month through 8of this month, worth about 70trillion won, and some investment banks forecast that the KOSPI could reach 1points2000.
As the KOSPI has renewed its all-time high since the start of the year, foreign investors have begun large-scale selling. In the securities market, foreign investors net sold approximately 7from last month through 8of this month, worth about 70trillion won. The scale of this selling has drawn market attention.
The industry views this selling as "mechanical selling" arising in the process of adjusting the weighting of Korean stocks. An explanation was offered that sell orders were placed as requests from clients to reduce their holdings increased following the KOSPI's sharp rise. An interpretation has been raised that this is a phenomenon distinct from deteriorating fundamentals.
Some investment banks pointed to the KOSPI's high level and presented the possibility of further gains in the index. These investment banks explained that the excessive rise instead triggered profit-taking by some investors. Specifically, they also forecast that the KOSPI could reach 1points2000.
Meanwhile, global investment banks5have disclosed foreign-fund movements compiled through the end of the month. The report is known to include the scale and timing of outflows of overseas funds. Differences in fund-movement patterns among institutions were observed.
Changes in trading value and supply-demand conditions are continuing in the market. Short-term volatility also appears to be expanding as the scale of net foreign selling remains large. Quarterly earnings announcements and institution-specific rebalancing schedules may affect supply and demand going forward.
Sources: 파이낸셜뉴스 증권
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