Foreign Investors Return After a Week... KOSPI Rises Over 1%

KOSDAQ Also on the Rise... Recovering to 1050 Level
Risk Asset Preference Spreads... Positive Impact on Foreign Investor Demand

On the morning of the 22nd, when the KOSPI started rising, the index was displayed on the electronic board in the Hana Bank dealing room in Jung-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] After a week of foreign investors selling off, they have stopped the sell-off and started buying stocks, leading the KOSPI to show a rise of over 1% for the first time in a while. The increase in U.S. Treasury yields and international oil prices has spread a risk-on sentiment, positively influencing foreign demand.

As of 10:52 a.m. on the 22nd, the KOSPI recorded 3,249.00, up 1.03% from the previous day. After opening slightly higher at 3,235.39, the index has been extending its gains. This marks the first time in about 10 days since the 12th that the KOSPI has shown a daily rise of over 1%.

It is assessed that both foreign and institutional investors buying in large amounts pushed the index up. They purchased stocks worth 103 billion KRW and 315.4 billion KRW, respectively. Notably, foreign investors turned to net buying for the first time since the 15th. On the other hand, individual investors sold stocks worth 425.9 billion KRW.

Sangyoung Seo, a researcher at Mirae Asset Securities, explained, "Despite the spread of the COVID-19 Delta variant, the surge in airline reservations positively influenced investment sentiment in the U.S. stock market. As major institutions continue to maintain their economic growth forecasts, the rise in U.S. Treasury yields and international oil prices, along with the weakening of the dollar, yen, and gold, highlighted a risk-on sentiment that worked favorably for foreign demand."

By sector, most showed gains. Steel & metals (1.68%), electrical & electronics (1.51%), insurance (1.47%), and financials (1.41%) led the increases. Meanwhile, precision medical equipment (-2.18%) and machinery (-0.81%) declined.

At the same time, the KOSDAQ also rose 0.72% from the previous day to 1,049.57. It continued its upward trend after a slight positive start.

Net buying by foreign investors was also seen in the KOSDAQ market, with a total purchase of 150.5 billion KRW. Individuals and institutions net sold 104.7 billion KRW and 26.9 billion KRW, respectively.

Most sectors showed gains. Digital content (3.38%), semiconductors (3.26%), textiles & apparel (2.15%), IT software & services (2.05%), and IT hardware (2.03%) were particularly strong. Paper & wood (-1.23%) and general electrical & electronics (-0.82%) declined.

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