Institutional Investor Sentiment Recovers, Large-Cap Stocks 'Bloom'... Domestic Stock Market Slightly Upward

On the 4th, dealers were working in the dealing room of Hana Bank in Euljiro, Seoul. On that day, the KOSPI index opened at 2714.83, up 7.01 points (0.26%) thanks to buying pressure from foreigners and institutions. The KOSDAQ started at 888.51, down 3.09 points (0.35%). The won-dollar exchange rate opened at 1202 won, down 4.4 won. Photo by Moon Honam munonam@

[Asia Economy Reporter Ji Yeon-jin] On the 8th, the domestic stock market, which started higher, is maintaining a slight upward trend. The KOSPI is being driven by institutional buying amid foreign investors' cautious stance, as various negative factors that threatened the market at the beginning of the year have not been resolved, and the KOSDAQ also recovered the 900-point level in early trading.

As of 10:24 a.m. on the day, the KOSPI index was trading at 2,773.56, up 28.50 points (1.04%) from the previous day. Institutions bought a net 138.5 billion KRW, and foreigners bought a net 33.4 billion KRW, supporting the index. On the other hand, individuals were net sellers of about 162.6 billion KRW.

The factors triggering negative market sentiment such as inflation, U.S. interest rate hikes, and geopolitical conflicts in Ukraine are linked to rising international oil prices, but the slight decline in oil prices the previous day seems to have boosted investor sentiment.

Kim Byung-yeon, a researcher at NH Investment & Securities, said, "Currently, the fastest short-term trigger in the cycle of complex negative factors is oil prices," adding, "Even after a technical rebound, the index is expected to gradually raise its lows." He also predicted, "In the short term, stocks that have fallen excessively will be advantageous, but after the short-term recovery, cyclical performance stocks such as semiconductors, IT hardware, and apparel will be relatively favorable."

Most of the top market capitalization stocks recorded gains on the day. LG Energy Solution (4.01%) showed strength for the fourth consecutive trading day, leading the index's rise. Expectations that large-scale funds will flow in as it is included in various indices this month, along with earnings announced on the day exceeding market expectations, acted as positive factors.

Additionally, most large-cap stocks such as Samsung Electronics (0.82%), SK Hynix (1.63%), Samsung Biologics (1.80%), LG Chem (1.70%), Hyundai Motor (0.27%), and Kakao (0.68%) were strong.

On the other hand, NAVER (-0.31%) and Samsung SDI (-0.35%) were weak.

Han Ji-young, a researcher at Kiwoom Securities, predicted, "LG Energy Solution will be included in the secondary battery ETF later this week and is scheduled for early inclusion in the MSCI index on the 14th, so the aftereffects of supply-demand distortions related to this will continue until that period."

The KOSDAQ index rose 7.83 points (0.87%) to 907.23. Individuals were net buyers of 37 billion KRW, and institutions bought 16 billion KRW, but foreigners' net purchases of about 44.1 billion KRW limited the rise.

Secondary battery parts stocks such as EcoPro BM (3.72%) and L&F (3.72%) showed strength, and game stocks including Wemade (6.74%), Pearl Abyss (4.14%), and Kakao Games (4.93%) surged. Cheonbo was down 0.71%, and Seegene fell 4.56%.

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