Svmuu News: After experiencing a “Black Monday,” the South Korean stock market rebounded quickly, but retail investors who had previously snapped up shares of leading semiconductor companies at rock-bottom prices found themselves in a situation where they “bought at the bottom during the crash, only to sell during the rebound.” According to data from the Korea Exchange, South Korean retail investors collectively purchased approximately 3.89 trillion won worth of Samsung Electronics and SK Hynix shares, with net purchases of 1.10 trillion won in Samsung Electronics and 2.79 trillion won in SK Hynix. On that day, the share prices of the two companies plummeted by 10.7% and 15.37%, respectively, with retail investors absorbing the shares sold off by foreign investors and institutions. However, as semiconductor stocks rebounded, retail investors quickly switched to the selling side. Over the two days of the 14th and 15th, individual investors cumulatively sold 1.45 trillion won worth of Samsung Electronics and 3.70 trillion won worth of SK Hynix, resulting in a combined net sell-off of 5.15 trillion won for the two stocks.
Data shows that the estimated average purchase price for Samsung Electronics by retail investors on the 13th was approximately 261,700 won, while the average selling price over the following two days was approximately 259,400 won; for SK Hynix, the average purchase price was approximately 1.9385 million won, and the average selling price was approximately 1.8493 million won. Based on the shares purchased on the 13th, retail investors incurred an overall loss of approximately 138.2 billion won. Meanwhile, Samsung Electronics rose by a cumulative 9.8% on the 14th and 15th, and SK Hynix rose by a cumulative 12.8% over the two days; however, because a large amount of capital that had bought at the bottom sold off early in the rebound on the 14th, investors were unable to fully benefit from the subsequent rally. (Etoday)
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Buy the dip, sell on the rebound? South Korean retail investors sold 5.1 trillion won worth of stocks in two days, missing out on the sharp rallies in Samsung and SK Hynix
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