Foreign investors are continuing to buy Kospi shares this month but are take profit on bellwether blue-chip Samsung Electronics Co. The decoupling goes against earlier investment patterns of foreign investors.

According to Korea Exchange on Thursday, foreign investors have net purchased 1.37 trillion won ($1.23 billion) worth of shares in the main stock market so far this month, continuing their buying spree although significantly eased from net purchase of over 4 trillion won last month. The bigger difference is that foreigners have been offloading their shares in Samsung Electronics. Foreign investment trend in market-heavy Samsung Electronics has mostly guided the Kospi throughout the year.

In January, foreign investors net sold almost 3 trillion won worth of local shares, a move seen as a result of a dramatic plunge in the Chinese stock market. In the same month, foreigners offloaded the largest amount of Samsung Electronics shares worth 699.1 billion won among shares of Kospi-listed firms. In June and July, when foreigners net bought about 5 trillion won worth of local shares, they also purchased 789.9 billion won worth of Samsung Electronics shares. Their buying spree has led shares of Samsung Electronics to surge from 1.29 million won in the end of May to 1.56 million won in the end of July.

In August, however, foreign investors’ trade in the Kospi and Samsung Electronics shares has shown a decoupling trend. As shares of Samsung Electronics reached a record high of 1,687,000 won this month foreigners took profit and net sold 961.6 billion won worth.

Except for two days, foreigners sold more than buying in Samsung Electronics.

Some market observers note that foreigners are buying Kospi shares amid funds being continuously flowed into emerging equity funds after Britain’s decision to leave the European Union in June.

Shin Joong-ho, a researcher at eBest Investment Securities Co., said that foreigners are not only interested in Samsung Electronics but also in buying a basket of other Korean shares.

By Chae Jong-won

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