Contrary to their positive approval of LG Chem Ltd’s decision to demerge battery business, institutions heavily sold off their holdings in the stock.

Institutional investors net sold 16.4 billion won ($14 million) in LG Chem stock from Sept 16 until 21, with net sale by financial institutions, such as securities firms and asset managers accounting for about half, worth 8.4 billion won.

Stock brokers and such financial institutions led the unloading, net selling 25.2 billion won on Sept 16 alone, when the news was made public that the chemical firm will soon decide on spinning off the lithium-ion battery business.

They turned as net buyers of 8.4 billion won in LG Chem on Sept 17 when the company made its spin-off decision official, but returned to net selling position on the following day, with 3.7 billion won. On Monday, they are estimated to have net purchased 11.8 billion won in LG Chem.

Private equity fund managers also have been net sellers, with 4.4 billion won for the four trading sessions until Monday.

Retail investors, fearing that the company would lose its strength without battery business under the same roof, also went on panicky sale in LG Chem stock and offloaded 306.9 billion won over the four trading sessions until Monday.

In stark contrast, foreign investors net purchased 306.3 billion won in LG Chem shares as they stayed as net buyers over the four trading sessions in a row.

By Kim Gyu-sik and Cho Jeehyun

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