After falling 5%, it turned higher again! The Korean stock market has experienced another "roller coaster" market, and foreign capital has withdrawn for five consecutive months
[Turn up again after falling 5%! South Korea's stock market has reappeared in a "roller coaster" market and foreign capital has withdrawn for five consecutive months] South Korea's stock market fell into shock again on Tuesday, experiencing a process from falling to rising, then falling and then rising again. As of press time, South Korea's KOSPI index has turned up, and the intraday decline once expanded to 5%. Data released by the Bank of Korea on Tuesday showed that foreign investors were net sellers of South Korean stocks for the fifth consecutive month in June, despite a sharp rise in South Korean stocks driven by technology stocks during this period.
Data released by the Bank of Korea on Tuesday showed that foreign investors were net sellers of South Korean stocks for the fifth consecutive month in June, despite a sharp rise in South Korean stocks driven by technology stocks during this period. According to data from the Bank of Korea, overseas investors sold a net US$30.72 billion worth of South Korean stocks and bonds in June, following a net sale of US$26.15 billion in May. Since February this year, foreign investors have maintained a net selling trend. Specifically, foreign investors sold a net US$32.37 billion of Korean stocks in June, but bought a net US$1.65 billion of bonds. The Bank of Korea said that as the market worried about excessive investment in artificial intelligence infrastructure and investor sentiment weakened, the scale of foreign net sales further expanded from the previous month. The bank added that as South Korea's stock market rose, foreign investors reduced their stock positions as part of a portfolio rebalancing process, further accelerating outflows. When the Bank of Korea released the above data, South Korea's stock market fell into shock again on Tuesday, experiencing a process from falling to rising, then falling and then rising again. As of press time, South Korea's KOSPI index had turned up, and the intraday decline once expanded to 5%. SSamsung Electronics shares rose more than 3%, and SK Hynix erased a 9% drop. The day before, SK Hynix's share price fell 15.37%, dragging the KOSPI index down nearly 9%. South Korea's local securities firm Korea Investment Securities (KIS) released a report on the same day predicting that SK Hynix's operating profit in the second quarter of this year will be slightly lower than market expectations. South Korea's government on Tuesday raised its economic growth and inflation forecasts for this year, citing strong chip exports and fiscal stimulus measures. The country's Ministry of Finance said in its semi-annual outlook report that it expects gross domestic product (GDP) to grow by 3% in 2026, up from the 2% forecast in January; overall consumer inflation is expected to average 2.6% this year, up from the previous estimate of 2.1%. Markets are now closely watching the Bank of Korea's meeting later this week. Most analysts expect the Bank of Korea to raise interest rates for the first time in more than three years on Thursday with inflation well above its 2% target. In the past few weeks, the Korean stock market has been facing correction pressure, and the KOSPI index has fallen by about 30% from the historical high reached in June. At the same time, due to the booming trading of leveraged ETFs linked to Samsung and SK Hynix, the volatility of the Korean stock market has been significantly amplified, with frequent "roller coaster" prices. A total of 13 market-wide circuit breakers have occurred in the history of the Korean stock market, and this year it has occurred 7 times, one of which occurred on Monday. (