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By Anna J. Park
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Since the local market crash at the beginning of the month, foreign investors have continued to dump local stocks ― so far they have net sold 11.15 trillion won ($9.09 billion).
Stocks they "threw away" were mostly large-cap ones, such as those in the semiconductor, car and energy sectors, as these are expected to be most exposed to any looming economic recession.
Samsung Electronics is the stock they sold the most from the start of March to the 25th, dumping 4.76 trillion won worth of the tech-giant's shares, as its price fell 10.24 percent.
SK Hynix, another chipmaker, was second, reflecting their uncertainty over the economic outlook for the semiconductor industry. Hyundai Motor, Samsung Electronics preferred stock and Samsung SDI were ranked among the top five companies whose shares were offloaded in March.
Foreign investors logged losses for March from their investments in the top five.
However, there are some stocks that foreign investors have still opted to put in their baskets, especially those less vulnerable to the economic impact of the COVID-19 outbreak, and have high potential for further growth with their differentiated competitiveness.
Their number one choice during March was bio-pharmaceutical company Celltrion, as they net bought 303 billion won of the company's shares. It was recently selected by the Korea Centers for Disease Control (KCDC) as a partner developer, along with SK Bioscience, to research an antiviral medicine to treat COVID-19.
Hanjin KAL, under Hanjin Group, was also sought by foreign investors, as an internal dispute is ongoing for control of the airline-focused conglomerate. Most of the foreign investment in the stock is throught to be related to Delta Air Line's buying of shares to increase its stake.
Tobacco company KT&G ranked third as foreign investors expect an improvement in its business performance this year. The company's recently signed deal worth $1.8 billion with Alokozay International ― a Middle East-based cigarette importer ― played a part in the surging demand for the stock. The contract is supposed to continue for the next seven years, securing stable growth for a considerable time.
Foreign investors also picked game developer Netmarble, as well as another healthcare-related stock Samsung Biologics.
