Foreign investors sold more than 7.6 trillion won in shares of Samsung Electronics and SK Hynix over the past week amid growing concerns about stricter regulations on artificial intelligence (AI) data centers following the U.S. midterm elections. This massive sell-off led to a sharp decline in the stock prices of both companies, with foreign ownership levels dropping to their lowest in approximately 17 years and 5 years, respectively.
According to data from the Korea Exchange and Koscom on November 8, foreign investors net sold about 10.4 trillion won in the securities market from November 2 to 6 over five trading days.
The most heavily sold stock was SK Hynix, which saw net sales amounting to 5.4 trillion won. Samsung Electronics followed with a net sale of 2.2 trillion won. Together, these two stocks accounted for a significant portion of the total foreign net selling.
The selling pressure extended to other major semiconductor and Samsung & SK Group stocks. Samsung Electro-Mechanics recorded net sales of 783.3 billion won, ranking third among foreign net sales, while Samsung Electronics (preferred shares) saw 156.4 billion won in net sales. Samsung SDI and SK Square also appeared among the top sold stocks.
As foreign selling continued, the foreign ownership ratio of Samsung Electronics and SK Hynix fell to levels not seen in years. As of November 6, Samsung Electronics' foreign ownership ratio was 45.95%, the lowest since July 7, 2009, when it was 45.83%.
SK Hynix's foreign ownership ratio also dropped to 48.27%, the lowest since November 22, 2021, when it was 47.97%.
Stock prices also experienced significant declines. Samsung Electronics closed at 188,700 won on November 6, down 36,300 won (16.13%) from 225,000 won at the end of the previous week on October 30. During the same period, SK Hynix fell from 1,418,000 won to 1,132,000 won, a drop of 286,000 won (20.17%).
The concentrated selling of semiconductor stocks by foreign investors increased volatility in the domestic stock market. On November 6, the KOSPI index plummeted by as much as 8.78% to 4,911.28, dipping below the 5,000 mark. A circuit breaker was triggered just 3 minutes and 33 seconds after the market opened, and a trading halt was implemented following the resumption of trading.
Although some losses were recovered, the KOSPI ended down 6.02% at 5,059.69. The KOSDAQ index also closed down 5.03% at 644.27.
Market analysts cite the deterioration of foreign investor sentiment as a key factor behind the recent stock market decline. Yuanta Securities stated, "The biggest burden was the foreign investor sentiment," noting that fears of forced selling exacerbated the decline.
In contrast, domestic individual and institutional investors took advantage of the situation, engaging in bargain buying of the shares that foreign investors were selling. Individuals net purchased 2.2 trillion won in SK Hynix, making it the most bought stock, while also net buying 1.9 trillion won in Samsung Electronics. The combined net purchase amount for these two stocks exceeded 4.1 trillion won.
Samsung Electro-Mechanics, Samsung Electronics (preferred shares), Samsung SDI, and SK Square also ranked among the top net purchases by individuals. This indicates that individual investors absorbed a significant portion of the shares sold by foreign investors.
Institutions also net purchased 1.4 trillion won in SK Hynix, making it the most bought stock, followed by net purchases of 261 billion won in Samsung Electronics after Celltrion.
Seo Sang-young, an executive at Mirae Asset Securities, commented, "We expect the volatility in the domestic stock market to continue," adding that the pressures from improving U.S. economic indicators, a strong dollar, and interest rates will persist. He further noted that the KOSPI's price relative to earnings has entered a historically undervalued territory.
According to data from the Korea Exchange and Koscom on November 8, foreign investors net sold about 10.4 trillion won in the securities market from November 2 to 6 over five trading days.
The most heavily sold stock was SK Hynix, which saw net sales amounting to 5.4 trillion won. Samsung Electronics followed with a net sale of 2.2 trillion won. Together, these two stocks accounted for a significant portion of the total foreign net selling.
The selling pressure extended to other major semiconductor and Samsung & SK Group stocks. Samsung Electro-Mechanics recorded net sales of 783.3 billion won, ranking third among foreign net sales, while Samsung Electronics (preferred shares) saw 156.4 billion won in net sales. Samsung SDI and SK Square also appeared among the top sold stocks.
As foreign selling continued, the foreign ownership ratio of Samsung Electronics and SK Hynix fell to levels not seen in years. As of November 6, Samsung Electronics' foreign ownership ratio was 45.95%, the lowest since July 7, 2009, when it was 45.83%.
SK Hynix's foreign ownership ratio also dropped to 48.27%, the lowest since November 22, 2021, when it was 47.97%.
Stock prices also experienced significant declines. Samsung Electronics closed at 188,700 won on November 6, down 36,300 won (16.13%) from 225,000 won at the end of the previous week on October 30. During the same period, SK Hynix fell from 1,418,000 won to 1,132,000 won, a drop of 286,000 won (20.17%).
The concentrated selling of semiconductor stocks by foreign investors increased volatility in the domestic stock market. On November 6, the KOSPI index plummeted by as much as 8.78% to 4,911.28, dipping below the 5,000 mark. A circuit breaker was triggered just 3 minutes and 33 seconds after the market opened, and a trading halt was implemented following the resumption of trading.
Although some losses were recovered, the KOSPI ended down 6.02% at 5,059.69. The KOSDAQ index also closed down 5.03% at 644.27.
Market analysts cite the deterioration of foreign investor sentiment as a key factor behind the recent stock market decline. Yuanta Securities stated, "The biggest burden was the foreign investor sentiment," noting that fears of forced selling exacerbated the decline.
In contrast, domestic individual and institutional investors took advantage of the situation, engaging in bargain buying of the shares that foreign investors were selling. Individuals net purchased 2.2 trillion won in SK Hynix, making it the most bought stock, while also net buying 1.9 trillion won in Samsung Electronics. The combined net purchase amount for these two stocks exceeded 4.1 trillion won.
Samsung Electro-Mechanics, Samsung Electronics (preferred shares), Samsung SDI, and SK Square also ranked among the top net purchases by individuals. This indicates that individual investors absorbed a significant portion of the shares sold by foreign investors.
Institutions also net purchased 1.4 trillion won in SK Hynix, making it the most bought stock, followed by net purchases of 261 billion won in Samsung Electronics after Celltrion.
Seo Sang-young, an executive at Mirae Asset Securities, commented, "We expect the volatility in the domestic stock market to continue," adding that the pressures from improving U.S. economic indicators, a strong dollar, and interest rates will persist. He further noted that the KOSPI's price relative to earnings has entered a historically undervalued territory.
* This article has been translated by AI.
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