Foreign investors’ profit-taking on heavyweight blue-chip Samsung Electronics is being blamed for containing the bellwether stock as well as the Korean benchmark index from breaking out a frustrating boxed range.

On Wednesday, the Korean Composite Stock Price Index (Kospi) climbed to 2,049.36, flirting near 2,050-mark for the first time in nine months, but the index closed 0.86 points lower at 2,044.64.

The key index has been stubbornly restrained to a boxed range because of foreign movements with Samsung Electronics shares. On Wednesday, Samsung Electronics closed down 1.66 percent, or 26,000 won, at 1,541,000 won. Foreign investors net sold in the electronics giant for seven consecutive days this month except August 1. Their net sales amounted to 222.3 billion won ($202 million) over this period.

Last month, they bought a net 745.6 billion won in the company, helping to bolster the stock price as well as the composite index.

Foreign investors have been extremely fickle with Samsung Electronics, repeatedly buying and selling once stock price reached a certain level. They dumped the share when it gained more than 2 percent. They renewed buying when the stock retreated 2 to 3 percent.

On June 7-9, foreign investors bought 300.6 billion won worth of Samsung Electronics shares, sending the stock up 2.28 percent from 1,398,000 to 1,430,000 won. Then they net sold 55.1 billion worth of shares for the following two days, sending the price to 1,371,000 won again. During this period, the KOSPI pedaled back to 1,979.06 after climbing to 2,027.18.

From July 26 to August 1, foreign investors bought Samsung Electronics shares for five straight days, helping boost the price by 2.48 percent but they turned net sellers on the following day. From July 13 to 20, Samsung Electronics shares soared 3.98 percent from 1,481,000 won to 1,540,000 won, but foreign investors began to sell their Samsung Electronics shares in the following day. As Samsung Electronics represents 17 percent of total capital of the KOSPI bourse, the trade of foreign investors contributed much to the range-box performance. On Wednesday, foreign investors’ selloff in Samsung Electronics kept the KOSPI from touching 2,050.

By Chae Jong-won

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