KOSPI and KOSDAQ Rise 1%... Foreigners Who Were Selling 'Buy Again After a Long Time'

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 19th, the domestic stock market started higher. Although existing negative factors such as the Ukraine crisis and tightening continue to drive market interest rates up and strengthen the US dollar, as can be inferred from the previous trading day’s movements in the US stock market, the domestic stock market seems to have developed some resilience.

On this day, the KOSPI opened at 2707.76, up 14.55 points (0.54%), and the KOSDAQ opened at 922.60, up 4.37 points (0.48%).

Despite issues related to interest rate hikes, such as rising US Treasury yields and a strong dollar, the ongoing earnings season has led investors to focus on individual stock issues, which at one point during the session helped the market turn upward?this is positive for the Korean stock market. In particular, the Philadelphia Semiconductor Index rose 1.88% on positive outlooks related to the data center industry, which is favorably affecting the supply-demand environment of related sectors in the domestic market.

Moreover, foreign investors, who had been selling continuously in the domestic stock market, have turned to buying from early in the session, supporting the index rebound. As a result, both the KOSPI and KOSDAQ are showing about 1% gains, with the KOSPI attempting to surpass 2720 and the KOSDAQ aiming to break 930. As of 9:18 AM, foreigners have purchased approximately 24.6 billion KRW and 29.2 billion KRW in the KOSPI and KOSDAQ markets respectively, showing net buying for the first time in a while.

Seo Sang-young, a researcher at Mirae Asset Securities, said, "Although concerns about prolonged high inflation due to the Ukraine war remain a burden, considering that this has already been reflected in the stock market, the impact is expected to be limited. Rather, with the earnings season underway, a stock market characterized by fluctuations depending on changes in individual stock groups is expected to continue." He added, "Today, the Korean stock market is expected to be led by the semiconductor sector showing solid performance."

Han Ji-young and Kim Se-heon, researchers at Kiwoom Securities, forecasted, "Despite persistent external uncertainties, the domestic stock market, which showed weakness in the previous trading day, is expected to show a rebound trend as the US stock market’s intraday rebound effect and market focus on individual earnings issues intensify."

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