Domestic Stock Market Maintains Slight Uptrend... Individuals "Realize Gains" · Foreigners "Buy"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] The domestic stock market, which started higher on the 7th, is maintaining a slight upward trend. The atmosphere appears to be one of cautious observation without a clear direction. Individual investors are realizing profits, while foreign investors have shown a buying preference for five consecutive trading days, acting as a positive factor for the market.

On the 7th, the KOSPI opened at 3,129.07, up 1.99 points (0.06%). The KOSDAQ started at 969.30, up 0.67 points (0.07%). As of 10:40 AM, the KOSPI is at 3,141.46, up 0.46% from the previous day. The KOSDAQ is at 973.97, up 0.55%.

Although individuals are realizing profits, foreign investors’ buying preference is raising interest in a market rebound.

Individuals are net sellers of 189.4 billion KRW and 16.6 billion KRW in the KOSPI and KOSDAQ markets, respectively. Institutions are net sellers of 32.3 billion KRW in the KOSPI market but net buyers of 3.3 billion KRW in the KOSDAQ market. Foreign investors are net buyers in both markets, purchasing 186.2 billion KRW and 15.2 billion KRW, respectively.

Jung Myung-ji, head of the Investment Information Team at Samsung Securities, said, "Since last week, surprising data related to U.S. employment and manufacturing have emerged, but interest rates and the dollar have not risen; instead, they moved in the opposite direction." He added, "Concerns about tightening have eased, and the observation that the dollar’s strength has reached a critical point is attracting foreign investors."

The KOSPI sectors showing gains include securities, finance, banking, pharmaceuticals, and steel & metals. Declining sectors are telecommunications, services, and transportation & warehousing.

The KOSDAQ sectors with gains are finance, telecommunications equipment, publishing, distribution, and pharmaceuticals. Declining sectors include information devices, IT components, software, and IT.

The earnings season officially begins with the preliminary first-quarter earnings announcements from Samsung Electronics and LG Electronics. The upward trend in first-quarter earnings forecasts for listed companies, which is positive for the market, continues to draw attention.

Kiwoom Securities researcher Kim Yu-mi said, "The Korean stock market is expected to change depending on Samsung Electronics’ preliminary earnings results today, and since the semiconductor sector’s rebound was rapid recently, the possibility of profit-taking after major announcements cannot be ruled out." She added, "However, if the results do not deviate significantly from solid market expectations, the decline is expected to be limited." She also noted, "The 6 basis point drop in U.S. Treasury yields and the 0.3% decline in the dollar index in the overnight U.S. market are expected to create a favorable environment for foreign investor demand."

Team leader Jung analyzed, "Concerns about regulatory tightening by the Biden administration have also emerged within the Democratic Party, leading to growth stocks, which had been suppressed, rising in the U.S. market." He concluded, "Overall, an environment conducive to a rally could be established."

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