Has the pension fund returned? Consecutive net purchases for four months settle KOSPI at 3060

Closed up 0.70% from the previous day... KOSDAQ rises 1.5%, breaking through the 940 mark
Public pension funds net purchase of 250 billion won... Buying for two consecutive days for the first time since November last year

On the morning of the 16th, when the KOSPI and KOSDAQ markets started on an upward trend, the electronic board in the dealing room of Hana Bank headquarters in Jung-gu, Seoul, displayed the KOSPI and the won/dollar exchange rate.
[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The KOSPI closed slightly higher. Although both foreigners and individual investors showed selling pressure, institutional investors' net buying helped the index settle in the 3060 range. Notably, the pension funds showed consecutive net buying for the first time in over four months.

On the 16th, the KOSPI closed at 3067.17, up 0.70% (21.46 points) from the previous day. After opening slightly higher at 3049.23, it gradually increased and stabilized in the 3060 range.

While foreigners and individuals both showed net selling, institutional investors' solo net buying prevented the index from falling and led to the slight gain. Foreigners and individuals sold net amounts of 27.8 billion KRW and 232.8 billion KRW respectively. In contrast, institutional investors bought a net 249.8 billion KRW. This is the second time this year that only institutional investors have shown net buying, following the 3rd of this month. Particularly, pension funds showed buying pressure for two consecutive days, net buying 85.1 billion KRW following 110.5 billion KRW the previous day. This is the first consecutive two-day net buying by pension funds since November 2nd and 3rd last year, over four months ago.

Many sectors rose. The electric and gas industry had the largest gain at 5.17%. This was followed by textiles and apparel (2.57%), pharmaceuticals (2.10%), and medical precision instruments (2.03%). Meanwhile, chemicals (-2.39%), non-metallic minerals (-1.36%), and insurance (-0.45%) declined.

Among the top 10 market capitalization stocks, SK Hynix had the largest increase at 2.9%. This was followed by Celltrion (2.6%), Samsung Electronics (1.2%), Hyundai Motor (0.8%), and NAVER (0.6%). LG Chem (-7.7%), Samsung SDI (-0.8%), and Samsung Biologics (-0.2%) fell. Kakao and Kia Motors remained flat.

The KOSDAQ showed a steeper rise. It closed at 940.65, up 1.48% (13.75 points) from the previous day. This was the first time since the 22nd of last month that the closing price exceeded the 940 level.

Both foreigners and institutions drove the index higher with net buying of 44.8 billion KRW and 82.2 billion KRW respectively. Notably, pension funds also net bought 25.8 billion KRW, the largest since 29.6 billion KRW on December 30th last year. Meanwhile, individuals sold a net 46.0 billion KRW.

Most sectors rose. Semiconductors (3.33%), telecommunication services (3.30%), distribution (2.53%), IT hardware (2.27%), entertainment and culture (2.24%), pharmaceuticals (2.24%), and telecommunication broadcasting services (2.21%) led the gains. Other manufacturing (2.75%) and transportation (1.68%) declined.

Except for EcoPro BM (-3.7%), all of the top 10 market capitalization stocks rose. Celltrion Healthcare had the largest gain at 3.4%, followed by Celltrion Pharm (2.9%), Studio Dragon (2.9%), Pearl Abyss (2.4%), CJ ENM (1.1%), SK Materials (1.0%), Alteogen (1.0%), Kakao Games (0.9%), and Seegene (0.6%).

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