South Korean stocks see largest foreign buying in two months

Jinse Finance reported on July 23 that, according to the Korean media outlet Seoul Economic Daily, expectations for a rebound in the KOSPI index are heating up as foreign capital has recorded the largest net purchase in nearly two months. Korean brokerage firms believe that, compared to single-day movements, whether foreign capital inflow has shifted to sustained net inflows is the key factor determining the future trend of Korean stocks. According to data from the Korea Exchange on July 23, foreign investors recorded a net purchase of 2.6211 trillion Korean won in the main market the previous day, the highest in nearly two months. Driven by the buying activity of foreign investors, the KOSPI index climbed above the 7,000-point mark during intraday trading for the first time after four trading days, triggering the 20th suspension of algorithmic trading this year. However, in the afternoon, as institutional and individual investors took profits, the index gave back most of its gains and ultimately closed up only 0.74% at 6,797.70 points. Kim Seok-hwan, a researcher at Mirae Asset Securities, stated that although foreign investors made large net purchases, concentrated sell-offs of semiconductor heavyweight stocks by individual and institutional investors to lock in profits significantly narrowed the index's gains. On the day, individual and institutional investors recorded net sales of 1.2177 trillion Korean won and 1.3961 trillion Korean won, respectively.