Live Updates > Live Update Details
2026-05-29 11:39:42
[Samsung and SK Hynix surges force funds to sell, foreign capital outflows hit record high] (1) The rapid rise in the share prices of Samsung Electronics and SK Hynix has forced some funds to sell due to reaching the 10% holding limit for a single stock. Asset management companies such as Zurich GAM and Singapore Jupiter have had to readjust their portfolios to comply with the regulations. (2) Analysts pointed out that the record foreign capital outflow is mainly due to the mechanical selling pressure brought about by fund rebalancing, which has further aggravated market volatility and highlighted the crowded nature of current trading strategies. (3) As of Thursday, global investors have net sold $63.6 billion of South Korean stocks this year, the largest monthly net outflow since 1999; of which Samsung and SK Hynix have seen a combined net outflow of $58.6 billion. Goldman Sachs said that most of the selling may have been completed, but if the market concentration of the two companies continues to rise, it may create additional pressure. Some investors are seeking to indirectly expand their exposure to the semiconductor sector through related companies, holding companies or insurance companies that hold large shares in the two companies.
