Shares Foreigners’ Possession at the Lowest Level

At the end of July, the total market value of stocks foreigners possess is at lowest level since the last September. That is because they have been on net selling position for last six consecutive months since the last February. On 14th, according to Financial Supervisory Service (FSS), the foreigners’ possession is more than 100 trillion Won at market value and 34.9% of total. It is the lowest level since the last September of 33.7%.

According to the number of shares, the level of their possession is the lowest level of 11.8% in this year as well. It is decreased by 2.9% since the end of last year of 14.7%.

Foreigners have on net selling position for last six consecutive months since the last February and sold 337.1 billion shares in July as well. The amount of net accumulated sale of shares is 4.27trillion won since the early of this year and it means that they have sold 610.7 billion Won of shares every month.

FSS emphasizes, “ As US stock market dropped sharply in July, foreign stock companies sold shares at the request of their clients for repurchasing US-stocks. The sale didn’t reflect their anxiety about Korea economy.” Particularly, FSS suggested that the sell-off by foreign investors is weakening in August and thus now we are not in the situation of ‘Sell Korea’.

In the market, most of people agree that foreigners’ net selling position is focused on Samsung Electronics by selling 3.8trillion won and thus the net sale tendency does not spread on all of other items.

The total market value of share in Kosdaq foreigners possess is 5.57 trillion Won (10.7%), and it increased by narrow limits compared to the end of last year (10.4%). Foreigners were on net purchasing position from January to March, in May and June, and net selling position in April and July.

Na-Yeon Lee larosa@donga.com