Foreign investors were net sellers of South Korean equities from July 1 to July 16, unloading KRW 12.1022 trillion worth of stocks on the KOSPI market and KRW 338.1 billion on the KOSDAQ, according to Etoday. Over the same period, the KOSPI index fell from 8,476.48 on June 30 to 6,820.60, a drop of more than 19%.
At the same time, overseas investors were net buyers of local exchange-traded funds, purchasing KRW 593.7 billion in Korean ETFs. The biggest inflows went to the KODEX Leverage ETF at KRW 195 billion, KODEX 200 at KRW 180.6 billion, and the KODEX 200 Futures Inverse 2X ETF at KRW 130 billion. Etoday said the simultaneous buying of products tracking the KOSPI 200 and inverse ETFs was interpreted as portfolio adjustment in a highly volatile market rather than a one-way directional bet.
In single-stock leveraged ETF flows, foreign investors bought KRW 22.7 billion tied to Samsung Electronics products but sold KRW 122.1 billion tied to SK Hynix products. They also bought KRW 102 billion in a U.S. Philadelphia Semiconductor Index ETF and KRW 62.7 billion in a U.S. Nasdaq 100 daily target covered call strategy ETF.
Foreign investors were net sellers in South Korea’s stock market from July 1 to July 16, with net sales totaling KRW 12.1022 trillion on the KOSPI and KRW 338.1 billion on the KOSDAQ, according to Etoday, as cited by BlockBeats on July 19.
During the same stretch, the KOSPI fell from 8,476.48 on June 30 to 6,820.60, marking a decline of more than 19%.
ETF buying moved in the opposite direction
In contrast to stock sales, foreign investors were net buyers of South Korean ETFs over the same period, with net purchases reaching KRW 593.7 billion. The largest inflows went to the KODEX Leverage ETF at KRW 195 billion, KODEX 200 at KRW 180.6 billion, and the KODEX 200 Futures Inverse 2X ETF at KRW 130 billion.
Etoday said the simultaneous buying of products linked to the KOSPI 200 and inverse index ETFs was interpreted as portfolio rebalancing in a volatile market, rather than a one-sided directional trade.
Semiconductor-linked products also saw mixed flows
Among single-stock leveraged ETFs, foreign investors were net buyers of Samsung Electronics-related products worth KRW 22.7 billion, while they were net sellers of SK Hynix-related products worth KRW 122.1 billion.
They also made net purchases of KRW 102 billion in a U.S. Philadelphia Semiconductor Index ETF and KRW 62.7 billion in a U.S. Nasdaq 100 daily target covered call strategy ETF.
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