Foreigners become net buyers of South Korean stocks amid eased AI woes
Foreign investors are snapping up tech and auto shares in the local stock market, possibly becoming net buyers a month after turning to net selling, data showed on Tuesday.
Foreign investors purchased a net 1.9 trillion won (US$1.3 billion) in the larger Korea Stock Price Index (KOSPI) market from Dec. 1 through Monday, according to the data from the Korea Exchange, the country's main bourse operator, reports Yonhap news agency.
It marks a sharp turnaround from November, when they sold a net 14.4 trillion won, the data showed.
Foreigners continued their buying spree Tuesday, net purchasing 373.2 billion won worth of local stocks as of 11:10 a.m.
Offshore investors appeared mainly focused on large-cap semiconductor makers and auto companies.
SK hynix was their top pick, purchasing a net 824.7 billion won. Foreigners also purchased 426.1 billion won worth of preferred shares at Samsung Electronics and 322.1 billion won worth of shares of Hyundai Motor.
"Foreigners and institutions have turned net buyers and are leading the year-end stock rally, boosted by favorable factors from the U.S. stock market, including recent advances in AI-related stocks," said Han Ji-young, an analyst at Kiwoom Securities Co.
On Monday (local time), shares of U.S. chipmaker Micron Technology hit an all-time high of $230.55 after the company signaled robust demand for its memory chips used in AI infrastructure.
Local carmakers have also come under the spotlight as the trade deal reached between Seoul and Washington in October eased tariff uncertainties weighing on the sector, analysts said.
"The local stock market is likely to continue its upward trend on continued semiconductor momentum and growing anticipation for a Santa Claus rally," Han added.
Meanwhile, South Korean stocks extended their winning streak to a third consecutive session on Tuesday, buoyed by foreign buying following eased concerns over an artificial intelligence (AI) bubble. The local currency lost ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 11.29 points, or 0.28 percent, to close at 4,117.32.
