KOSPI Exploring 'Upward Direction', Recovers Above 3200... Foreign Investors Return

[Asia Economy Reporter Lee Seon-ae] On the 31st, the domestic stock market closed higher. The KOSPI index, which started the day with gains and continued to fluctuate slightly within a narrow range, recovered the 3200 level thanks to combined buying by individuals and foreigners.

On this day, the KOSPI index closed at 3203.92, up 15.19 points (0.48%). The KOSPI opened at 3192.06, up 3.33 points (0.10%) from the previous trading day, and continued to fluctuate slightly throughout the session.

By investor type, foreigners and individuals led the rise with net purchases of 520.4 billion KRW and 258.7 billion KRW, respectively. Institutions were net sellers with 780.7 billion KRW.

Among the top 10 KOSPI market capitalization stocks, Samsung SDI (-3.91%) and LG Chem (-1.56%) declined. Samsung Biologics (2.18%), SK Hynix (1.60%), Hyundai Motor (1.29%), NAVER (1.26%), Samsung Electronics Preferred (1.11%), Kakao (0.82%), Samsung Electronics (0.50%), and Celltrion (0.37%) rose.

By sector, non-metallic minerals (-1.35%), transportation and warehousing (-1.15%), steel and metals (-0.61%), chemicals (-0.59%), and banks (-0.46%) declined. Sectors that rose included machinery (2.62%), food and beverage (2.09%), construction (1.66%), services (1.22%), and distribution (1.0%).

The KOSDAQ closed at 981.89, up 4.32 points (0.44%). It opened at 979.00, up 1.54 points (0.16%). Individuals and foreigners were net buyers with 42.2 billion KRW and 17.9 billion KRW, respectively. Institutions were the sole net sellers with 47.1 billion KRW.

Among the top 10 KOSDAQ market capitalization stocks, EcoPro BM (-2.17%), Seegene (-0.88%), and SK Materials (-0.37%) declined. CJ ENM (5.56%), Pearl Abyss (4.12%), Alteogen (3.40%), HLB (2.08%), Celltrion Pharm (0.87%), Celltrion Healthcare (0.41%), and Kakao Games (0.38%) rose.

By sector, declining sectors included paper/wood (-3.07%), metals (-1.11%), machinery/equipment (-0.83%), publishing (-0.8%), and textiles/apparel (-0.49%). Rising sectors were broadcasting services (5.05%), telecommunications broadcasting services (4.14%), telecommunications equipment (3.27%), entertainment and culture (1.86%), and transportation equipment/parts (1.32%).

Yuanta Securities forecasted, "This week, the Korean stock market's direction will be determined by the impact of somewhat subdued inflationary pressures, confirmed through indicators such as May's Korean export data to be released on June 1 and the upcoming major countries' PMI announcements."

The domestic stock market in June is expected to continue a volatile trend amid rising COVID-19 vaccination rates and expectations for improved corporate earnings, despite ongoing concerns over U.S. tapering (gradual reduction of quantitative easing) and weakened investor sentiment. Researcher Chae Hyun-gi of Cape Investment & Securities advised, "As expectations for economic reopening continue with expanded vaccination rates this week, interest in consumer discretionary sectors (such as cosmetics) will persist. Given the anticipated strong May export figures, buying in the automobile sector, which has a high export ratio among consumer discretionary sectors, is also valid. Additionally, from a mid- to long-term perspective through the second half of the year, there are opportunities for bargain buying in growth sectors such as semiconductors."

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