Despite a bullish stock market, retail investors lost big in their equity investments in July, data showed Wednesday, due to insufficient strategy and information.

The top 20 stocks purchased by individuals tumbled 6.11 percent on average last month, according to the data compiled by market tracker FnGuide.

In contrast, their 20 most sold stocks generated an average return of 8.07 percent, far higher than the 1.02 percent on-month gain in the benchmark Korea Composite Stock Price Index.


Driven by strong foreign buying, the KOSPI was on a roll last month, hitting a record high of 2,451.53 on July 24. The KOSPI rose 0.84 percent to close at 2,422.96 on Tuesday.

Among the top 20 stocks, only top-cap Samsung Electronics and three other companies gathered ground with Samsung gaining 2.08 percent.

LG Display, the third-most favored stock by retail investors, plunged 13.41 percent over the cited period, with top automaker Hyundai Motor, the No. 4 pick by individuals, sinking 11.31 percent.

In contrast, foreign investors and local institutions registered solid returns. The return of the top 20 stocks purchased by foreigners averaged 3.88 percent last month, with institutions posting a comparable figure of 5.94 percent.

Market watchers said the gap in returns came as foreigners and institutions have broader access to detailed analysis and information compared with retail investors. (Yonhap)