Foreigners and Institutions Increase Net Buying... KOSPI Rises Over 1% in Morning Session

Powell's "Patience on Rate Hikes" Remarks... US Stock Market Hits All-Time High
Top Market Cap Stocks Rebound... Samjeon and SK Hynix Rise Over 1%

On the 4th, dealers were working in the dealing room of Hana Bank in Euljiro, Seoul. On that day, the KOSPI index opened at 3000.92, up 25.21 points from the previous session. The won-dollar exchange rate started at 1178.5 won, down 3.1 won. Photo by Moon Honam munonam@

[Asia Economy Reporter Minji Lee] As net buying by foreigners and institutions expands, the KOSPI is showing a rise of over 1%. It is analyzed that investment sentiment toward risk assets has greatly expanded as the November Federal Open Market Committee (FOMC) results were evaluated as more dovish than expected.

At 10:11 a.m. on the 4th, the KOSPI stood at 3004.81, up 0.98% (29.10 points) from the previous trading day. The index started the day at 1012.62, up 0.76% (7.62 points) from the previous day, and has shown strong upward momentum. It is interpreted that the domestic stock market was influenced as the U.S. stock market continued its record-high streak. Although the Federal Reserve announced tapering (asset purchase reduction) at the previous day’s FOMC, the market responded positively as Chairman Powell drew a line by saying, “This does not mean a rate hike is imminent.”

Looking at trading trends by investor type, foreigners and institutions bought stocks worth 44 billion KRW and 342.5 billion KRW respectively, while individuals alone sold stocks worth 391.3 billion KRW.

Most sectors continued their upward trend, with machinery (2.17%), transportation equipment (1.56%), and electrical and electronics (1.44%) showing the largest gains. The machinery sector showed strong gains following news of large-scale nuclear power construction in China, with Hanshin Machinery (16.8%), Doosan Heavy Industries & Construction (6.3%), and SNT Energy (3.2%) rising. Major market capitalization stocks also surged, with Samsung Electronics up 1.14%, SK Hynix up 1.42%. NAVER (2.61%), Samsung Biologics (0.92%), Kakao (2.81%), LG Chem (0.38%), Samsung SDI (2.46%), and Hyundai Motor (2.88%) also continued their upward momentum.

Among major stocks, Kakao Pay is showing a decline of over 7% on its second day after listing. Foreigners continued their net selling from the previous day, selling about 87,000 shares on this day alone. NCSoft, which released Lineage W today, fell about 13% from the previous trading day. Although it ranked first in pre-download rankings in major countries, raising expectations for success, the stock price plunged as user dissatisfaction emerged.

At the same time, the KOSDAQ index stood at 1010.72, up 0.57% (5.72 points) from the previous trading day. The index started the day at 1012.62, up 0.76% (7.62 points) from the previous day, showing a rise of over 1%, but the upward momentum slowed as selling pressure emerged mainly from foreigners and individuals. Looking at trading trends by investor type, only institutions bought stocks worth 31.8 billion KRW, while foreigners and individuals sold stocks worth 35.3 billion KRW and 2.4 billion KRW respectively.

By sector, general electrical and electronics (1.84%), entertainment and culture (1.43%), and IT components (1.44%) showed the largest gains. Among major market capitalization stocks, Celltrion Healthcare (0.36%), EcoPro BM (3.41%), Kakao Games (9.33%), Pearl Abyss (0.10%), L&F (3.55%), HLB (0.94%), and SK Materials (1.49%) continued their upward trend, but Wemade fell 6.79% from the previous trading day.

Lee Kyung-min, a researcher at Daishin Securities, explained, “With the possibility of rapid tapering and early rate hikes dismissed, the recovery and improvement of investment sentiment are expected to remain valid for the time being. However, since global supply chain bottlenecks continue, attention should be paid to whether this can strengthen the upward trend of the index.”

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