Panic buy the dip, sell the bounce? Korean retail investors sell 5.1 trillion won in two days, missing out on big gains in Samsung and SK Hynix

Odaily Planet Daily News: After experiencing a "Black Monday," the Korean stock market staged a rapid rebound. However, individual investors who had aggressively bought the dip in semiconductor giants fell into the trap of "panic buying the dip and selling the bounce." According to data from the Korea Exchange, Korean retail investors collectively purchased approximately 3.89 trillion won worth of Samsung Electronics and SK Hynix shares. Of this, net purchases of Samsung Electronics amounted to 1.10 trillion won, while net purchases of SK Hynix totaled 2.79 trillion won. On that day, the stock prices of the two companies plummeted by 10.7% and 15.37% respectively, with retail investors absorbing the shares unloaded by foreign investors and institutions. However, as semiconductor stocks rebounded, retail investors quickly turned into sellers. Over the two days of the 14th and 15th, individual investors cumulatively sold 1.45 trillion won of Samsung Electronics and 3.70 trillion won of SK Hynix, resulting in a combined net sale of 5.15 trillion won for the two stocks.

Data shows that the estimated average purchase price for retail investors buying Samsung Electronics on the 13th was around 261,700 won, while their average selling price over the subsequent two days was approximately 259,400 won. For SK Hynix, the average purchase price was about 1,938,500 won, compared to an average selling price of around 1,849,300 won. Based on the shares purchased on the 13th, retail investors suffered a total loss of approximately 138.2 billion won. Meanwhile, Samsung Electronics rose about 9.8% cumulatively over the 14th and 15th, and SK Hynix gained about 12.8% over the same two days. However, because a significant portion of the dip-buying funds were sold early in the rebound on the 14th, retail investors failed to fully capitalize on the subsequent rally. (Etoday)