KOSPI Reacts to US Interest Rate Drop... Foreigners Net Buy Futures for 4 Consecutive Trading Days

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] The domestic stock market, which started higher on the 21st, continues its upward trend into the afternoon. Supported by net buying from institutional investors, foreign investors have also been net buyers for four consecutive trading days in the futures market.

As of 2:05 PM, the KOSPI is up 0.44% at 2730.62. After opening at 2725.71, it has expanded its gains, breaking through and maintaining above 2730. The KOSDAQ opened at 930.45 and has remained flat, currently standing at 930.92.

Institutional demand is supporting the market. Both the KOSPI and KOSDAQ markets are recording net purchases of 491.2 billion KRW and 35.8 billion KRW respectively. Financial investment, trust funds, and pension funds are all net buyers, driving the market higher. Conversely, foreign investors show a net buying preference of 35.1 billion KRW in the KOSPI market but a net selling preference of 30.1 billion KRW in the KOSDAQ market. However, in the futures market, they have purchased 454.5 billion KRW, continuing their net buying streak for four consecutive trading days. Individual investors have sold 522.3 billion KRW in the KOSPI market but have slightly turned to net buying in the KOSDAQ market, recording net purchases of 8.6 billion KRW.

The strong sectors in the KOSPI are construction (+1.30%), steel and metals (+1.24%), and machinery (+1.08%), while the weak sectors are medical precision (-1.34%), food and beverages (-0.96%), and services (-0.84%). In the KOSDAQ, strong sectors include metals (+2.38%), construction (+2.10%), and paper and wood (+1.32%), whereas weak sectors are publishing and media replication (-0.68%), entertainment and culture (-0.65%), and other services (-0.49%).

Shinhan Financial Investment Research Center stated, "The KOSPI rose as attention focused on the decline in U.S. interest rates and the earnings of major domestic companies," interpreting that "the U.S. 10-year Treasury yield approached 3% and then entered a pause."

Seo Sang-young, a researcher at Mirae Asset Securities, commented, "The Federal Reserve (Fed) highlighted robust U.S. economic growth in the Beige Book (economic report), raising economic outlooks and boosting confidence, which has had a positive impact." He added, "Additionally, the increase in demand from Treasury auctions and the recent pullback following the rise in U.S. Treasury yields, along with the dollar's weakness leading to a stronger Korean won, are creating a favorable environment."

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