Foreign investors net bought 137.5 billion won worth of Korean stocks on July 9, marking the second consecutive day of net inflows into the KOSPI market, according to Korea Exchange data. The buying activity followed a 344 billion won net purchase the day before, ending a 14-trading-day selling streak. Analysts attribute the shift to KOSPI's historically low valuations — the benchmark index's forward price-to-earnings ratio reached 6.17 times, below the 6.27 times recorded during the 2008 financial crisis low, according to Daishin Securities researcher Lee Kyung-min. The KOSPI closed at 7,291.91 on July 9, up 0.62 percent.
Foreign Investors Net Buy Samsung Electronics for First Time in 15 Trading Days
Samsung Electronics received the largest foreign net inflow on July 9, with overseas investors purchasing 241 billion won worth of shares — the first net buy in 15 trading days. The stock closed at 278,000 won, up 0.18 percent. Samsung's 12-month forward price-to-earnings ratio has fallen to 4.8 times amid recent price corrections, reaching what analysts describe as historically low territory. SK Hynix also trades at approximately 5 times forward PER following recent adjustments.
KOSPI Forward PER Falls Below 2008 Financial Crisis Low
The KOSPI's forward price-to-earnings ratio of 6.17 times represents the lowest valuation in the index's history, according to Daishin Securities researcher Lee Kyung-min. "The KOSPI forward PER of 6.17 times is lower than the low point during the financial crisis (6.27 times) and shows the highest valuation attractiveness historically," Lee stated. The metric reflects the combined impact of price corrections in Samsung Electronics and SK Hynix, the two largest components of the benchmark index.
SK Hynix NASDAQ ADR IPO Receives Over 7x Oversubscription
SK Hynix's upcoming American Depositary Receipt listing on NASDAQ attracted over seven times the offered shares in demand forecasting, according to Bloomberg. Market participants expect the ADR listing to create a positive feedback loop for the Korean-listed parent shares, similar to the pattern observed after TSMC's ADR debut. However, UBS issued a note suggesting the NASDAQ-listed ADR may trade at a premium to the Korean shares, recommending investors sell KOSPI-listed stock and buy the ADR instead. Foreign investors net sold 440 billion won worth of SK Hynix shares on July 9, reversing the net buy position from the day before.
FAQ
What did foreign investors do on July 9 in the Korean stock market?
Foreign investors net bought 137.5 billion won worth of KOSPI stocks on July 9, marking the second consecutive day of net purchases after ending a 14-trading-day selling streak with a 344 billion won net buy the day before.
Why is the KOSPI valuation considered historically low?
The KOSPI's forward price-to-earnings ratio reached 6.17 times on July 9, falling below the 6.27 times low recorded during the 2008 financial crisis, according to Daishin Securities researcher Lee Kyung-min, who described it as the highest valuation attractiveness in the index's history.
How much demand did SK Hynix's NASDAQ ADR IPO receive?
SK Hynix's NASDAQ American Depositary Receipt offering received over seven times the offered shares in subscriptions during demand forecasting, according to Bloomberg.
