Growing Expectations for Economic Normalization... KOSPI Maintains 3160 Level

Foreigners and Institutions Both Net Buyers... Broad Rise in Technology and Contact Sectors

On the morning of the 25th, the KOSPI and KRW/USD exchange rate are displayed in the dealing room of Hana Bank's headquarters in Jung-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The KOSPI continues its firm upward trend, maintaining the 3160 level. With growing expectations for economic normalization, simultaneous buying by foreigners and institutions appears to be supporting the index.

As of 10:25 AM on the 25th, the KOSPI recorded 3163.60, up 0.61% from the previous day. After a firm start at 3152.93, it has maintained the 3160 level.

Simultaneous buying by foreigners and institutions seems to be defending the index from decline. Foreign and institutional investors, who showed net selling early in the session, turned to net buying, pushing the index above 3160. As of 10:36 AM, foreigners had net bought 4.9 billion KRW and institutions 262.7 billion KRW. Meanwhile, individuals sold 264.8 billion KRW net.

The overnight rise in the U.S. stock market, including technology stocks as well as travel and leisure sectors, is interpreted as boosting expectations for economic normalization. On the 24th (local time) at the New York Stock Exchange, the Dow Jones Industrial Average closed at 34,393.78, up 0.54% from the previous trading day. The S&P 500 and the tech-heavy Nasdaq indices closed at 4,197.16 and 13,661.17, up 0.99% and 1.41%, respectively.

Sangyoung Seo, a researcher at Kiwoom Securities, explained, "Although the U.S. stock market rise was led by technology stocks, the travel and leisure sectors also showed strength. With New York City announcing 100% in-person classes for the fall, the pace of economic normalization is progressing rapidly, positively influencing investor sentiment."

Most sectors within the KOSPI market are on the rise. The transportation and warehousing sector showed the largest increase at 3.04%, followed by food and beverages (2.17%), paper and wood (1.78%), chemicals (1.12%), and electrical and electronics (0.87%). Textile and apparel (-1.13%), pharmaceuticals (-0.76%), and construction (-0.27%) declined.

The KOSDAQ also rose 0.91% to 956.99 at the same time. After opening at 949.78, up 0.15% from the previous day, it has been expanding its gains.

In the KOSDAQ market, foreigners and institutions also showed simultaneous buying, with net purchases of 587.7 billion KRW and 13.4 billion KRW, respectively. Individuals sold 71.3 billion KRW net.

By sector, all sectors except transportation (-0.64%) and other manufacturing (-0.05%) are rising. The order was entertainment and culture (2.14%), telecommunications equipment (1.37%), medical and precision instruments (1.92%), distribution (1.36%), food and tobacco (1.32%), and paper and wood (1.17%).

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