Foreigners Turn Net Buyers and Institutional Buying Power Boost Kospi to 3100 Recovery... Kosdaq Up 2%

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] The KOSPI recovered to the 3100 level, supported by foreign investors' net buying and institutional buying momentum. The KOSDAQ is also showing a strong gain of over 2%.

As of 11:13 a.m. on the 23rd, the KOSPI was trading at 3106.28, up 1.50%. The KOSDAQ was trading at 990.74, up 2.36%.

While individual investors are selling 456.9 billion KRW and 170.1 billion KRW worth of stocks in the KOSPI and KOSDAQ markets respectively, foreign investors and institutions are recording net purchases. Foreign investors are net buying approximately 44.9 billion KRW and 105.3 billion KRW, and institutions are net buying about 428.4 billion KRW and 65.7 billion KRW respectively.

Han Ji-young, a researcher at Kiwoom Securities, analyzed, "Robert Kaplan, President of the Dallas Federal Reserve Bank, who had a hawkish stance within the U.S. Federal Reserve (Fed), mentioned that if the Delta variant negatively impacts U.S. growth, the Fed could adjust the early tapering (reduction of asset purchases). He emphasized that the Fed will closely monitor the Delta variant until the September Federal Open Market Committee (FOMC), indicating a market-friendly stance that provided relief."

However, caution is required. Kim Dae-jun, a researcher at Korea Investment & Securities, emphasized, "At this moment, the market sentiment is not in a situation to change rapidly. It is a time to find various factors that can restore risk asset preference, and we need to watch closely whether any favorable variables will emerge ahead of the Jackson Hole Symposium."

He added, "We need to monitor the spread of the Delta variant in the U.S., vaccination speed, U.S. PMI and durable goods orders, and the Bank of Korea's Monetary Policy Committee interest rate decision. If better-than-expected results come from these areas, market sentiment could change, but if not, the sluggish atmosphere may continue. Therefore, until the outcomes of these factors are confirmed, it is necessary to avoid aggressive responses and refine strategies."

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