KOSPI Starts Higher Backed by New York Stock Market... Foreigners Net Selling in Early Session

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 16th, the domestic stock market started higher.

The KOSPI index opened at 3,165.38, up 11.98 points (0.38%↑), and the KOSDAQ index opened at 1,047.85, up 5.06 points (0.49%↑).

This is attributed to the rise in the New York stock market overnight. On the 15th (local time), the U.S. New York stock market rose significantly amid mixed indicators such as an increase in the Empire State Manufacturing Index and weak industrial production. On that day, the Dow Jones Industrial Average closed at 34,814.39, up 0.68% from the previous session. The Standard & Poor's (S&P) index rose 0.85% to 4,480.70. The Nasdaq closed at 15,161.53, up 0.82% from the previous session.

In the early session, only individual investors are showing net buying. Individuals have a buying advantage of approximately 106.1 billion KRW in KOSPI and 81.1 billion KRW in KOSDAQ. Foreigners and institutions are both net sellers. Foreigners are net selling about 92.4 billion KRW and 58.1 billion KRW respectively. Institutions also show a selling advantage of about 64.3 billion KRW and 15.3 billion KRW respectively.

Sangyoung Seo, a researcher at Mirae Asset Securities, said, "The U.S. stock market showed a mixed trend in a narrow range but expanded gains in the afternoon, showing strength, which is expected to have a positive impact on the Korean stock market. However, considering that the rise is due to individual factors, the expansion of gains is likely to be limited." He added, "Moreover, with tomorrow being the U.S. futures and options expiration day and the Chuseok holiday next week approaching, if active foreign investor activity does not continue, the possibility of profit-taking sales cannot be ruled out."

Although the KOSPI is attempting a rebound at the 200-day moving average after falling below the 120-day moving average, it is advised that breaking through the resistance formed by the Ichimoku cloud seems difficult.

Since the September futures expiration on the 9th, the KOSPI has risen for four consecutive days until the previous day, but the overall price trend appears to be in a correction phase. During the mid-August correction, the support levels of the July lows and the 120-day moving average were breached downward, and during the rebound process continuing until early September, the July lows and the lower boundary of the cloud were confirmed as resistance, leading to a decline.

Researcher Jeong In-ji of Yuanta Securities analyzed, "Looking at the trend since early July, it is progressing in a stair-step downward structure, so even if a short-term rebound phase continues, the extent of the rise is likely to be limited. The intraday lows on August 20 and September 10 were formed around the 200-day moving average level, and the September lows are higher than those in August, indicating that the low-price buying demand is not weak yet. However, as the Ichimoku cloud acts as resistance, the medium to long-term outlook favors a downward possibility."

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