Institutional net buying of 1.2 trillion 'record high'... KOSPI rises 3% to close at 2147

Largest Since January 2016... Samsung Electronics, Market Cap Leader, Also Rises 6%
KOSDAQ Hesitates... Closes Down 0.8% at 737

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The KOSPI index continued its four-day winning streak, rising about 3%. It appears that institutions led the index increase by net buying stocks worth over 1 trillion won. Meanwhile, the KOSDAQ, which had risen for three consecutive days, slightly declined compared to the previous day, showing signs of hesitation.

On the 3rd, the KOSPI closed at 2,147.00, up 2.87% (59.81 points) from the previous day. This is the highest closing price since February 21. After opening at 2,108.55, up 1.02% from the previous day, it steadily rose. At 2:17 PM, it reached 2,156.55, surpassing the 2,150 level. This marks a recovery to the level before the full-scale spread of the novel coronavirus disease (COVID-19).

The index rise was driven by record-breaking net buying by institutions, supported by foreign investors. In the KOSPI market, institutions and foreigners net bought 1.1585 trillion won and 204 billion won, respectively. This is the first time institutions have net bought over 1 trillion won since April 6. It is the largest scale since January 28, 2016 (1.6441 trillion won). On the other hand, individuals net sold 1.3286 trillion won.

Most sectors showed upward trends. Banks rose the most, by 8.01%. This was followed by steel & metals (6.90%), electrical & electronics (5.24%), securities (4.95%), transportation equipment (4.69%), and finance (3.76%). Conversely, service industries (-1.76%), medical precision (-1.67%), food & beverages (-1.12%), and paper & wood (-0.55%) declined.

Most of the top 10 market capitalization stocks rose. Samsung Electronics and SK Hynix led with increases of 6.0% and 6.4%, respectively. They were followed by Hyundai Motor (5.8%), Celltrion and LG Chem (1.3%), and LG Household & Health Care (1.2%). Meanwhile, Kakao and NAVER fell by 3.8% and 3.6%, respectively. Samsung SDI (-1.0%) and Samsung Biologics (-0.4%) also declined.

Meanwhile, the KOSDAQ closed at 737.66, down 0.80% (5.92 points) from the previous day. It rose to 750.14 shortly after opening, marking the highest level since May 9 last year, but then slightly retreated to close lower.

In the KOSDAQ market, foreigners and institutions net sold 100.4 billion won and 222.9 billion won, respectively. Conversely, individuals net bought 351.1 billion won.

By sector, most showed declines. The technology growth enterprises sector fell the most, by 5.05%. This was followed by other services (-4.76%), internet (-2.16%), software (-1.76%), medical & precision instruments (-1.70%), and telecommunications services (-1.45%). On the other hand, metals (2.22%), transportation equipment & parts (2.17%), and broadcasting services (1.19%) rose.

Among the top 10 market capitalization stocks, more stocks rose than fell. Celltrion Pharm led with a 7.9% increase. This was followed by HL Biopharma (3.0%), CJ ENM (1.9%), KMW (0.3%), Pearl Abyss and Studio Dragon (0.1%). Celltrion Healthcare, the largest KOSDAQ market cap stock, remained flat. Meanwhile, Alteogen, ranked fifth in market cap, plunged 24.7%. EcoPro BM and Seegene also fell by 3.7% and 2.6%, respectively.

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