KOSPI Continues Uptrend on Foreign Net Buying... "Investment Strategy in Earnings Improvement Stocks Remains Valid"

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] The domestic stock market continues its upward trend, supported by four consecutive days of net buying by foreign investors.

On the 6th, as of 10:27 AM, the KOSPI stood at 3123.40, up 0.08% (2.57 points) from the previous trading day. The index opened at 3123.80, up 2.97 points (0.10%) from the previous close, maintaining its upward momentum.

In the market, foreigners are net buyers of 229.5 billion KRW, continuing their buying streak for four consecutive trading days. Meanwhile, individuals and institutions are net sellers of 87.3 billion KRW and 138.2 billion KRW, respectively.

Among the top 10 stocks by market capitalization, performance was mixed. Kakao led the gains with a 5.38% increase, followed by NAVER (2.52%), Celltrion (0.32%), and Samsung Electronics (0.23%). LG Chem (-1.59%) and Hyundai Motor (-1.07%) declined.

At the same time, the KOSDAQ index was down 0.28% (2.72 points) from the previous day, standing at 967.05. The index opened higher at 971.11, up 1.34 points (0.14%), but then turned downward.

On the KOSDAQ, foreigners and institutions are net sellers of 129.8 billion KRW and 11.1 billion KRW, respectively, while individuals are net buyers of 151.5 billion KRW.

Among the top 10 by market capitalization, Celltrion Healthcare (0.31%), Pearl Abyss (2.17%), and Kakao Games (0.38%) rose. In contrast, Celltrion Pharm (-0.07%) and HLB (-1.67%) showed weakness.

Experts advise that, ahead of the earnings season, a differentiated trend by sector and stock is expected, making it effective to invest in stocks with clear earnings improvement. Recently, as the first-quarter earnings announcement season approaches, upward revisions of profit forecasts by country continue. It is evaluated that in Korea, profit forecasts are clearly being revised upward not only for this year but also for next year.

Researcher Kang Bong-ju of Meritz Securities said, "In the short term, the stock market may move sideways or show slight declines, but it remains within a mid- to long-term upward trend," adding, "IT, automobile, and consumer discretionary sectors are generally expected to have high profit growth rates this year."

There was also an opinion that attention should be paid to sectors that have been neglected by foreign and institutional buyers since the beginning of the year. Researcher Lee Jae-sun of Hana Financial Investment advised, "If the supply and demand conditions for foreigners and institutions improve, it is necessary to focus on the semiconductor and automobile sectors, which have relatively high selling pressure from foreigners and institutions, as they have lower valuation burdens and potential for earnings improvement."

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