SEOUL, Nov. 7 (Korea Bizwire) — Even during the week when American big tech firms reported disappointing third-quarter results and suffered a sharp decline in stock prices, South Korean investors net bought a substantial amount of their stocks, data showed Sunday.
Meta Platforms Inc., the operator of Facebook, ranked first in terms of net buying by local investors during the past week (Oct. 28-Nov. 3), according to the Korea Securities Depository.
Local investors net bought about US$26 million worth of Meta Platforms Class A shares, whose closing price slid by 30.8 percent during the period from Oct. 25 to Nov. 1.
They also net bought about $15 million worth of Class A and $4 million worth of Class C shares of Alphabet Inc., the holding company of Google Inc., with their combined net buying figure being higher than the roughly $16 million spent on Tesla shares.
Alphabet shares plunged to $90.47 on Nov. 1 from $104.48 on Oct. 25.
Retail investors also net bought $8.6 million worth of the exchange traded fund (ETF) Proshares Ultra Pro QQQ, which is a 3X leveraged inverse ETF that tracks the Nasdaq-100 index.
Stock analysts, however, cautioned that the recent plunge in the stock prices of big tech companies could not be a temporary phenomenon resulting from macroeconomic conditions, adding that local investors need to take a more prudent approach in estimating the growth potential of profitability of their core businesses.
J. S. Shin (firstname.lastname@example.org)