Foreigners net-buy 3 tln won of Korean stocks in July

Foreign traders have favored South Korean tech shares recently, while turning their backs on the automobile sector, data showed Monday.

Foreigners scooped up a net 2.96 trillion won ($2.6 billion) worth of local stocks in the first three weeks of July alone, buttressing the benchmark Korea Composite Stock Price Index, according to the Korea Exchange.

Ditching the traditional pattern of a "balanced" portfolio, they focused buying on tech, steel and materials shares.

They net-purchased 631.6 billion won worth of shares in Samsung Electronics Co. and 240.6 billion of SK hynix Inc. in anticipation of improved earnings reports.

Other stocks most chosen by foreign investors include LG Display Co., Korea Zinc Co. and POSCO.

In contrast, they offloaded a net 160.9 billion won of shares in Hyundai Motor Co. and 86.7 billion won in Kia Motors Corp.

Hyundai, South Korea's No. 1 car maker, has suffered a continued drop in profits amid slowing global sales.

"Foreigners have discontinued a traditional 'basket'- style investment to form a portfolio in consideration with market cap ratio," Samsung Securities Co. said. "They have shown a trend to dump the stocks of firms that are expected to post a fall in revenue and buy those expected to report good earnings." (Yonhap)