With Favorable Chinese Trends, Domestic Stock Market Rises... Foreigners Drive KOSPI to Recover 2680 Level

KOSDAQ Index Slightly Rises...Wemade Stands Alone in Decline

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] The KOSPI index recovered to the 2680 level on the 31st, supported by foreign investors' 'Buy Korea' trend. Foreign investors have recorded net buying for four consecutive trading days since last week, driven by expectations of China's easing of COVID-19 lockdowns, during which the KOSPI has also risen.

As of 2:13 PM on the day, the KOSPI index was trading at 2681.62, up 11.96 points (0.45%) from the previous day.

The index started the day slightly down (-0.10%), fluctuated around the flat line, and began to rebound around 11 AM. This is the first time in 20 trading days since the 3rd of this month that the index has recovered the 2680 level.

The KOSPI rebound was driven by foreign investors, who net purchased approximately 329.4 billion KRW. Individual investors net sold about 226.3 billion KRW, and institutions net sold about 128.6 billion KRW.

With China's planned lifting of COVID-19 lockdowns on the 1st of next month, reopening expectations have emerged. Additionally, the manufacturing Purchasing Managers' Index (PMI) for China, released during the trading session, improved but remained below 50, spreading hopes for economic stimulus. China's May manufacturing PMI rose by 2.2 points from April's 47.4, indicating a slight easing of economic contraction. Seosangyoung, a researcher at Mirae Asset Securities, said, "Although China's PMI slightly improved compared to last month's release, it still remains below the baseline of 50, which can raise expectations for the Chinese government's active economic stimulus policies."

Among the top market capitalization stocks on KOSDAQ, only Samsung Electronics (-0.44%) and Samsung SDI (-1.89%) showed weakness. LG Chem surged nearly 5% after news broke that it signed a joint venture agreement with B&M, the cathode material subsidiary of China's Huayou Cobalt. NAVER also rose 2.67%, and Kia was up 1.79%.

At the same time, the KOSDAQ index was trading at 891.20, up 4.81 points (0.54%). Individual investors led the rebound by purchasing stocks worth 126.9 billion KRW, and institutions also turned to net buying with 2.2 billion KRW. Foreign investors were net sellers of about 126 billion KRW.

LN F is recording a 3% increase, and CJ ENM is showing gains in the 2% range. WEMADE, which surged 10% the previous day, was the only top KOSDAQ stock declining with a drop of around 1%. Lee Jin-woo, a researcher at Meritz Securities, analyzed, "The domestic stock market had already priced in some risks related to exchange rates and inflation, so there was a natural release of selling pressure this morning," adding, "The easing of China's lockdowns has contributed to the won's appreciation, calming foreign investors' selling pressure."

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