KOSPI Rises Nearly 1% on Foreign Net Buying... KOSDAQ Recovers to 630 Level

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] The KOSPI is rising nearly 1% in early trading, supported by net buying from foreign investors. The KOSDAQ index is also rising, recovering the 630 level.

On the 4th, the KOSPI opened at 2005.81, down 8.34 points (0.41%) from the previous trading day. Although the KOSPI started lower, it soon turned upward and is increasing its gains. As of 9:25 a.m., it is trading at 2031.84, up 17.69 points (0.88%) from the previous day.

The previous day, the KOSPI closed at 2014.15, up 0.58% from the previous trading day, buoyed by the strong U.S. stock market. The U.S. stock market surged significantly the day before, reflecting expectations of economic stimulus from global central banks. This improved investor sentiment and lifted the index. President Moon Jae-in’s remarks on COVID-19 support measures were also positively received. However, the gains were pared after news that no additional fiscal policy measures were included ahead of the G7 finance ministers’ meeting.

Overnight, major indices on the New York Stock Exchange (NYSE) declined despite the Federal Reserve’s (Fed) emergency 50 basis point (bp) rate cut. On the 3rd (Eastern Time), the Dow Jones Industrial Average closed at 25,917.41, plunging 785.91 points (2.94%) from the previous day. The Standard & Poor’s (S&P) 500 index fell 86.86 points (2.81%) to 3,003.37, and the tech-heavy Nasdaq dropped 268.07 points (2.99%) to 8,684.09.

Sangyoung Seo, a researcher at Kiwoom Securities, said, “Expectations of further Fed rate cuts, policy responses such as the European Central Bank’s long-term refinancing operations (TLTRO), emergency measures hinted by the World Bank and International Monetary Fund (IMF), and proactive moves by the Korean government will limit concerns about economic slowdown.” He added, “Considering this, the Korean stock market’s correction will be limited compared to the U.S. market, benefiting from government responses worldwide.”

Looking at current trading trends by participant, foreign investors are leading the index’s rise by net buying for the first time in eight trading days. Foreigners have net purchased 71.6 billion KRW, while individual and institutional investors have net sold 41.4 billion KRW and 30.9 billion KRW, respectively.

By sector, transportation and warehousing, services, and food and beverages are rising, while insurance and paper and wood sectors are falling.

Most of the top market capitalization stocks are rising. LG Household & Health Care, KB Financial Group, Samsung Biologics, Samsung SDI, and Samsung Electronics are among the top gainers.

Currently, in the KOSPI market, 466 stocks are rising, including one stock hitting the upper price limit, while 315 stocks are falling with no stocks hitting the lower price limit. 104 stocks are unchanged.

The KOSDAQ index is also rising nearly 1%. It opened at 623.75, down 3.07 points (0.49%) from the previous day, but is gradually increasing its gains in early trading. As of 9:25 a.m., it is at 631.41, up 4.59 points (0.73%) from the previous day.

Regarding current supply and demand, similar to the KOSPI, foreign investors are net buying 33.2 billion KRW, while individual and institutional investors are net selling 28.3 billion KRW and 4.0 billion KRW, respectively.

By sector, distribution, semiconductors, and chemicals are rising, while transportation equipment and parts, broadcasting services, and finance are falling.

Among the top market capitalization stocks, Medytox, Pearl Abyss, Soulbrain, Paradise, and EcoPro BM are rising, while HLB and Hugel are falling.

Currently, in the KOSDAQ market, 835 stocks are rising with no stocks hitting the upper price limit, 363 stocks are falling with no stocks hitting the lower price limit, and 118 stocks are unchanged.

This content was produced with the assistance of AI translation services.