Korean stock market faced foreign sell-off exceeding 12 trillion won in July, Samsung and SK Hynix experience a stark contrast in fortunes

The Korea Exchange data shows that from July 1st to 16th, foreign investors recorded a net sell-off of approximately 12.44 trillion won in Korean stocks, including a net sell-off of 12.10 trillion won in the KOSPI market and 338.1 billion won in the KOSDAQ market. During the same period, foreign investors bucked the trend by net purchasing approximately 593.7 billion won in Korean ETFs. Notably, ETFs tracking the KOSPI 200 index and inverse ETFs betting on a market decline were both among the top net purchases by foreign investors, indicating that foreign capital is not unilaterally bearish on the market, but is instead using long and short products to hedge risks and cope with market volatility.

In terms of individual stock leveraged ETFs, foreign investors showed a divergent attitude towards Samsung Electronics and SK Hynix, resulting in a stark contrast in their fortunes. From July 1st to 16th, foreign investors net purchased 22.7 billion won in single-stock leveraged ETFs for Samsung Electronics, but net sold a substantial 122.1 billion won in leveraged ETFs related to SK Hynix. (Etoday)