'Foreigners Net Buy 1 Trillion Won' KOSPI Rises for 3 Consecutive Trading Days... KOSDAQ Nears 900 Mark

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] On the 31st, the KOSPI index rose for the third consecutive day, recovering to the 2680 level for the first time in 20 trading days, as expectations for the lifting of China's COVID-19 lockdown stimulated foreign investors' sentiment. The KOSDAQ also recorded gains, approaching the 900 mark.

On this day, the KOSPI index closed at 2685.90, up 16.24 points (0.61%) from the previous day. The index started slightly down (-0.10%) and fluctuated around the flat line throughout the morning, then rebounded around 11 a.m. It was the first time since the 3rd of this month, after 20 trading days, that the index recovered the 2680 level.

The KOSPI rebound was driven by foreign investors, who net purchased stocks worth approximately 1.0598 trillion KRW. This is the largest net purchase since March 24 this year, when they bought 1.0218 trillion KRW.

With the lifting of China's COVID-19 lockdown scheduled for the 1st of next month, reopening expectations emerged. Additionally, the Chinese Manufacturing Purchasing Managers' Index (PMI) released during the trading session improved more than expected, leading to a significant rebound in the Chinese stock market, which in turn stimulated investment sentiment.

China's May manufacturing PMI rose 2.2 points from April's 47.4, indicating a slight easing of the economic contraction, which caused the won-dollar exchange rate to reverse and decline.

Park Gwang-nam, a researcher at Mirae Asset Securities, said, "China's manufacturing indicators exceeded expectations," adding, "Month-end rebalancing demand also seems to have pushed up the closing price."

Among the top market capitalization stocks on the KOSPI, LG Chem closed at 585,000 KRW, up 5.03% from the previous trading day, following news of establishing a joint venture for cathode materials. Except for Samsung Electronics (-0.74%) and Samsung SDI (-1.89%), all other major stocks rose.

The KOSDAQ index closed at 893.36, up 6.92 points (0.78%). Individual investors led the rebound by purchasing stocks worth 59.2 billion KRW, while foreign and institutional investors sold stocks worth 45.9 billion KRW and 11.8 billion KRW, respectively.

Among the top market capitalization stocks on the KOSDAQ, CJ ENM rose 5.13% to close at 118,900 KRW. Additionally, Ecopro BM increased by 3.23%, and L&F rose 3.92%, showing strength centered on secondary battery component stocks. HLB also rose 3.41%.

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