Selling Nervous Individuals "Samsung Electronics Supply and Demand Important"... Foreigners Not Strong Buyers 'NO'

On the 10th, employees are working at Hana Bank in Myeongdong, Seoul. On this day, the KOSPI closed at 3,100.58, up 15.91 points (0.52%) from the previous trading day. [Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] The domestic stock market is on the rise, supported by simultaneous 'buying' from foreigners and institutions.

As of 9:10 AM on the 15th, the KOSPI index is at 3,146.45, up 45.87 points (1.48%) compared to the previous trading day. The index opened at 3,108.70, up 8.12 points (0.26%) on the day.

Looking at investor-specific supply and demand, individual investors are selling alone, offloading 212 billion KRW worth. In contrast, foreigners and institutions are net buyers, purchasing 180.1 billion KRW and 20.9 billion KRW respectively.

At the same time, the KOSDAQ index is at 970.19, up 5.88 points (0.61%) from the previous trading day. The index opened at 965.83, up 1.52 points (0.16%) on the day.

Investor trends show individual investors are net buyers with 58.4 billion KRW, while foreigners and institutions are net sellers, offloading approximately 37.2 billion KRW and 20 billion KRW respectively.

With forecasts predicting a dull sideways box range, it appears individual investors are realizing profits. Although the index is rising due to foreign buying dominance, the environment is favorable but it is unlikely to be seen as a strong upward reversal. So far, foreign supply and demand remain neutral, making it difficult to conclude that strong net buying has returned.

Seo Sang-young, a researcher at Kiwoom Securities, explained, "Market volatility may increase depending on foreign futures trends, so it is necessary to pay attention to related supply and demand," adding, "The domestic stock market will show changes depending on foreign supply and demand."

Lee Jae-sun, a researcher at Hana Financial Investment, said, "For a sustained upward trend in the index, it is important whether the buying strength of individuals, who were the main players in the January bull market, is maintained or whether foreign supply and demand, which has determined the index direction so far, improves," adding, "If individual buying strength weakens somewhat, foreigners will inevitably have greater influence in determining the index level, but so far, foreign supply and demand have been neutral since the beginning of the year."

Samsung Electronics' supply and demand is also an important factor in gauging the stock market's direction. As of 9:18 AM, Samsung Electronics is trading at 84,000 KRW, up 2.94% from the previous trading day. Due to the slight upward trend, it is judged that it is still insufficient to lead the domestic stock market's upward momentum.

The securities industry expects sectoral differentiation and short-term rotation to continue, recommending short-term trading strategies.

Researcher Bae Han-joo of Shinhan Investment Corp. said, "In the short term, the pace of index gains is expected to slow down, and interest in earnings is likely to expand," forecasting, "Sectors such as steel, finance, and consumer staples, which have underperformed in stock price gains relative to earnings improvements, are likely to show strength."

Lee Kyung-min, a researcher at Daishin Securities, said, "The KOSPI is expected to continue a breathing phase for a while due to having run fast, ahead, and far, so it is necessary to hold the bat short until confirming the resumption of the KOSPI's upward trend," adding, "The slowdown in KOSPI's upward momentum suggests that sector and stock-specific responses are more effective than market-wide responses," and further suggested, "For KOSPI sectors, a gatekeeping and short-term trading strategy centered on insurance, securities, non-ferrous metals and wood, and cosmetics and apparel sectors, which have high price merit and valid earnings expectations, is recommended."

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