Foreign Investors Log 58% Returns Amid KOSPI Record High, Widening Gap with Retail Traders

Foreign investors achieved an average return of 58% on their top 10 stocks purchased in the stock market in April. This figure is approximately three times higher than the returns earned by individual investors. While the KOSPI index set a new all-time record by surpassing 6,700 points, the performance of foreign investors widened the profit gap with individual investors. The average return on the top 10 stocks most purchased by individual investors stood at 18.3%. Amidst these profitability disparities in the domestic stock market, individual investors showed a trend of shifting their investment focus by redirecting funds back into U.S. stocks they had previously sold.

According to the Korea Securities Depository's Securities Information Portal (SEIBro), individual investors net-purchased $1.103 billion (approximately 1.6291 trillion won) from the U.S. stock market over six trading days from the 23rd of last month, displaying a reversal from their previous selling trend.

The securities industry analyzed that the market is currently characterized by stock picking, with a focus on individual company fundamentals. Diagnoses suggest that strong earnings momentum in specific companies, such as semiconductors, is driving differentiation in the U.S. stock market. Foreign investors' active buying sentiment has significantly contributed to the KOSPI's recent record-breaking performance.