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- Foreign investors are observed to be using the opportunity for bargain purchases of small and mid-cap semiconductor stocks with high valuation appeal.
- Foreign investors continue to make large-scale stock sales in the Korean market following President Yoon's martial law situation.
- The semiconductor stocks that were net bought are analyzed to be undervalued, showing a lower price-to-earnings ratio than the industry average.
- The article was summarized using an artificial intelligence-based language model.
- Due to the nature of the technology, key content in the text may be excluded or different from the facts.
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Foreign investors are net buying small and mid-cap semiconductor stocks with high valuation (price level relative to performance) appeal. Observations suggest they are using the stock price drop due to the martial law situation as an opportunity for bargain purchases.
According to the Korea Exchange on the 6th, foreign investors have been net buying Techwing, a semiconductor equipment stock on the KOSDAQ market, for three consecutive days from the 4th to 11 a.m. today. The total net purchase amount during this period is 6.9 billion won. Foreign investors also net bought 4.7 billion won worth of Jusung Engineering, another semiconductor equipment stock, during the same period. They continued net buying Eugene Technology (+2 billion won), Duksan Neolux (+1.6 billion won), and others.
On the 4th, when news of President Yoon Suk-yeol's martial law broke, foreign investors accelerated their exit from the Korean stock market. From then until this morning, foreign investors have net sold over 700 billion won in the securities market. However, they have bought these stocks instead.
These stocks have recently been valued lower than the industry average. As of the previous day, the 12-month forward price-to-earnings ratio (12M PER) of the 37 KRX Semiconductor Index constituent stocks with consensus (average securities firm estimates) is an average of 29 times. The 12M PER of the stocks net bought by foreign investors is Techwing 7.2 times, Jusung Engineering 10.7 times, Eugene Technology 11.2 times, and Duksan Neolux 11.7 times. This means the stock prices are undervalued compared to the industry average. Techwing's 12M PER is even lower than the KOSPI Index (8.5 times).
Foreign investors are net selling 71 billion won worth of SK Hynix this morning, but they net bought 199.8 billion won worth on the 4th and 5th. As a result, the total net purchase amount from the 4th to this morning is calculated to be 128.8 billion won. The fact that this stock's 12M PER is recently at a historically low 4.8 times seems to have influenced this.
