Stocks most heavily bought by foreign investors sharply outperformed the broader market last month, delivering returns nearly three times higher than those favored by retail investors.
All of the top 10 most purchased stocks by overseas investors on the benchmark Kospi posted positive monthly returns in April. The group surged an average of 57.3 percent, far outpacing the Kospi’s 30.6 percent gain over the same period.
Samsung Electronics, the most heavily net-bought stock by foreign investors, rose 32 percent. Doosan Enerbility followed with a 39 percent gain, while SK hynix jumped 59 percent.
Other heavily bought names also delivered strong returns. Hyundai Rotem advanced 58 percent, Samsung SDI climbed 70 percent and SK Innovation rose 35 percent.
Retail investors, by contrast, saw more modest gains. The top 10 stocks most heavily purchased by individuals posted an average return of 18.3 percent — roughly one-third of the performance of foreign-favored stocks.
LS Electric, the most net-bought stock among retail investors, surged 93.6 percent. Other widely purchased names posted comparatively limited gains, including Naver at 4.7 percent, Hanwha Ocean at 9.7 percent, Kia at 4.6 percent and Korea Aerospace Industries at 2.6 percent.
Losses in key sectors weighed on retail portfolios. Hybe dropped 12 percent amid legal concerns involving Chairman Bang Si-hyuk, while Samsung Biologics slipped 2.3 percent on uncertainty related to labor union issues.
Market analysts expect the Kospi rally to potentially lose some momentum in May, but thought the broader uptrend was likely to remain intact.
“Given elevated uncertainty in global markets and geopolitical conditions, a short pause in early May is possible,” said Kim Jong-min, an analyst at Samsung Securities. “Tactical profit-taking and portfolio adjustments may be warranted, but there is no strong reason to exit the market.”
Other analysts also flagged near-term volatility risks.
“Investors should be prepared for short-term swings driven by easing expectations, even as the medium- to long-term uptrend supported by corporate earnings remains intact,” said Lee Kyung-min, an analyst at Daishin Securities.
silverstar@heraldcorp.com
