Foreign Investors Turn Net Buyers, KOSPI and KOSDAQ Close Higher Together... Steel Stocks Rally

[Image source=Yonhap News]

[Asia Economy Reporter Myung-Hwan Lee] The KOSPI and KOSDAQ indices closed higher on the 23rd, buoyed by institutional buying. Foreign investors, who had been net sellers, switched to net buyers on the day, driving the index gains. Institutions also contributed by net buying a combined 280 billion KRW worth of stocks across both KOSPI and KOSDAQ markets, further supporting the rise in indices.

On the day, the KOSPI closed at 2,735.05, up 25.05 points (0.92%) from the previous day. It opened at 2,727.12, up 17.12 points (0.63%) from the previous trading day, and briefly rose to the 2,740 level in the morning before trimming some gains in the afternoon. By investor type, institutions led the rise with net purchases worth 235.2 billion KRW. Foreigners also bought 60.2 billion KRW, while individuals sold 301.1 billion KRW.

Most of the top market capitalization stocks on the KOSPI ended higher. Samsung Electronics closed at 70,500 KRW, up 0.28%. Other gainers included ▲LG Energy Solution (2.39%) ▲Naver (1.77%) ▲Samsung Electronics Preferred (0.47%) ▲Hyundai Motor (1.44%) ▲LG Chem (3.25%) ▲Samsung SDI (2.16%). Samsung Biologics was the only stock among the top 10 by market cap to fall, down 0.12%.

By sector, steel and metals surged 4.23%, showing strong performance. This was interpreted as a reaction to damage reports from steel companies in the Russia-Ukraine region. Banks (2.07%) and insurance (2.03%) also rose. Conversely, transportation and warehousing (-0.31%) and textiles and apparel (-0.16%) showed weakness.

Researcher Kwang-Nam Park of Mirae Asset Securities noted, "Concerns over production disruptions at Azovstal, Europe's largest steel company, due to Russian military attacks, and the default risk of Severstal in Russia, have raised expectations of a positive spillover effect for domestic steel companies. Some steel companies’ price hike moves are expected to improve profitability."

The KOSDAQ closed at 930.57, up 5.90 points (0.64%) from the previous day. It opened at 929.35, up 4.68 points (0.51%), briefly rose to the 930 level, but then declined. In the afternoon, it showed a slight upward trend before closing. By investor type, foreigners and institutions bought 78.2 billion KRW and 48.3 billion KRW respectively, while individuals were net sellers of 91.7 billion KRW.

Among the top market cap stocks, EcoPro BM surged 7.95% to close at 391,200 KRW. Technology-related stocks such as Kakao Games (2.68%) and L&F (2.47%) also rose. Other gainers included ▲Pearl Abyss (1.03%) ▲Celltrion Pharm (0.41%) ▲Wemade (0.29%) ▲Cheonbo (1.19%). Celltrion Healthcare (-0.15%) and HLB (-1.39%) declined, while CJ ENM closed unchanged at 135,000 KRW.

By sector, paper and wood (4.23%), general electrical and electronics (3.36%), and metals (3.03%) rose. Medical and precision instruments (-0.60%) and other services (-0.57%) declined slightly.

Researcher Park commented on the domestic stock market, "The U.S. stock market rose mainly on large technology stocks with high expectations for earnings improvement, which also lifted the domestic market on corporate earnings optimism. The switch to buying by foreigners further propelled the index’s additional gains."

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