KOSPI, Foreigners and Institutions Buy Together, Strong at '3130 Level'...Foreigners' Net Buying After 11 Trading Days

Battery Shock at LG Chem...Mixed Views from Securities Firms

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] On the 24th, the KOSPI continued its strong upward trend around the '3130 level,' supported by simultaneous net buying from foreign and institutional investors. LG Chem, which had plunged over 11% due to the GM recall shock the previous day, reversed to an upward trend.

As of 10:42 a.m. on the day, the KOSPI was at 3,136.34, up 46.13 points (1.49%) from the previous trading day. The index started trading at 3,119.70, up 29.49 points (0.95%) from the previous day, and has been fluctuating around the 3,130 level.

Looking at trading trends by investor type, individuals, who were net buyers early in the session, switched to net selling. Individuals are net selling 64.7 billion KRW. Meanwhile, foreigners and institutions, who had been net sellers, are net buying 19.6 billion KRW and 42.7 billion KRW, respectively.

Among the top market capitalization stocks, Samsung Electronics (2.18%), SK Hynix (2.43%), NAVER (0.70%), and Kakao (0.34%) are showing upward trends. LG Chem, which had fallen over 11% due to GM's electric vehicle recall the previous day, is slightly up 1.13%, reversing to an upward trend. However, opinions in the securities industry are divided. While the prevailing view is that there is little impact on long-term growth potential, some lowered their target prices citing a decline in market confidence. Researcher Ianna from Ebest Investment & Securities explained, "The current stock price level hardly reflects the value of chemicals and life sciences and is trading at a level that includes a holding company discount on the value of materials and batteries." On the other hand, Samsung Securities downgraded LG Chem's target price from 1.1 million KRW to 1.05 million KRW, citing renewed concerns over battery fire risks.

At the same time, the KOSDAQ is at 1,011.22, up 18.04 points (1.82%) from the previous trading day. The KOSDAQ opened at 1,002.19, up 0.91% (9.01 points) from the previous day.

On the KOSDAQ, individuals are the sole net buyers with 69.6 billion KRW. Foreigners and institutions are net selling 47.2 billion KRW and 14.5 billion KRW, respectively.

Among the top 10 market capitalization stocks, Ecopro BM (-0.94%), Celltrion Pharm (-1.43%), and SK Materials (2.68%) are on a downward trend. Celltrion Healthcare (0.08%), Kakao Games (0.80%), and HLB (6.85%) have risen.

Researcher Park Yoonchul from Hi Investment & Securities emphasized, "With easing tapering concerns, today's domestic stock market is expected to face upward pressure influenced by the global stock market rally," adding, "Attention should be paid to whether foreigners will switch to net buying due to easing tapering concerns."

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