Why are global investors buying up South Korean stocks?
Friday’s foreign buying smashes records
Global investors, initially net sellers of South Korean stocks throughout 2023, have turned buyers in a dramatic reversal of sentiment. The shift is evident in a record $5 billion one-day purchase of $7.2 trillion won worth of shares, a stark contrast to the market's wild swings. This change in mood follows a roughly 40% decline in domestic retail traders, who have been left anguished by the drawdown from a June peak.
Analysts attribute the turn to a perceived intact growth momentum in heavyweight chipmakers, particularly Samsung Electronics and SK Hynix. Leveraged holdings, which contributed to the market's volatility, may have thinned out, suggesting a potential bottom in the near future.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
