KOSPI Turns Upward, Sideways Around 2330 Level... Foreign Investors Switch to Net Buying Amid Chinese Economic Indicators

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] The KOSPI turned upward in the afternoon session on the 15th, hovering around the 2330 level. Although it briefly fell more than 1% in the morning, dipping below the 2300 mark, it reversed to an upward trend in the afternoon. Foreign investors, who were net sellers in the morning on the Korea Exchange, turned to net buyers following the release of China's June real economy indicators.

As of 2 p.m. on the day, the KOSPI stood at 2328.47, up 0.26% (6.15 points) from the previous trading day. The KOSPI opened at 2335.12, up 0.55% (12.80 points) from the previous day, but soon turned downward, showing a decline of more than 1% during the morning session. Although the 2300 level was briefly breached, it has been riding an upward momentum since the afternoon.

By investor type, individuals and foreigners bought 51.6 billion KRW and 38.4 billion KRW respectively, while institutions alone sold 104.7 billion KRW. Foreign investors, who were net sellers in the morning session, switched to net buyers in the afternoon.

Foreign investors turned to net buying after the release of China's June economic indicators. On this day, China's National Bureau of Statistics announced that the second-quarter Gross Domestic Product (GDP) was 29.2464 trillion yuan (approximately 5732 trillion KRW), a 0.4% increase compared to the same period last year. Kyungmin Lee, a researcher at Daishin Securities, said, "Although China's second-quarter GDP fell short of all expectations, the June retail sales surprise was positive," adding, "The market seems to be focusing more on the improvement in June real economy indicators and expectations for stimulus measures in the second half of the year rather than China's GDP."

Among the top market capitalization stocks on the Korea Exchange, semiconductor-related stocks are showing an upward trend. This is interpreted as a result of Taiwan's TSMC announcing strong second-quarter earnings the previous day, alleviating concerns about the global semiconductor industry. Samsung Electronics traded at 59,400 KRW, up 3.30% (1,900 KRW) from the previous day, eyeing the 60,000 KRW level. SK Hynix is also trading at 98,800 KRW, up 5.11% (4,800 KRW) from the previous day. Samsung Electronics Preferred (1.68%), Hyundai Motor (0.82%), Samsung SDI (1.66%), and Kia (0.51%) are also on the rise. Meanwhile, LG Chem (-2.64%), Samsung Biologics (-1.21%), NAVER (-0.86%), and LG Energy Solution (-0.25%) are declining.

By sector, the electric and electronics sector is showing a significant rise of 2.58%. The textile and apparel (1.80%) and manufacturing (1.00%) indices are also increasing. Conversely, transportation and warehousing (-1.97%), telecommunications (-1.61%), and pharmaceuticals (-1.39%) are declining.

At the same time, the KOSDAQ index is at 761.78, down 0.56% (4.30 points) from the previous trading day. The KOSDAQ opened at 768.41, up 0.30% (2.33 points) from the previous day, but then fell more than 1%, partially recovering losses in the afternoon. By investor type, foreigners and institutions sold 153.6 billion KRW and 44.2 billion KRW respectively, while individuals alone bought 197.2 billion KRW, countering the selling pressure.

Many of the top market capitalization stocks on the KOSDAQ are declining. EcoPro BM is trading at 111,100 KRW, down 5.04% (5,900 KRW) from the previous day. Kakao Games (-4.17%), L&F (-3.29%), and Chunbo (-1.28%) are also on a downward trend. HLB and Alteogen are trading at the same prices as the previous day.

By sector on the KOSDAQ, semiconductors (0.87%) are performing well, with non-metallic minerals (0.74%) and information devices (0.67%) also showing slight gains. Food and tobacco (-2.68%), general electric and electronics (-2.40%), and digital content (-1.75%) are declining.

The securities industry expects the domestic stock market to continue showing sector-specific trends for the time being. Sangyoung Seo, head of the Media Content Division at Mirae Asset Securities, said, "On the 15th, there are many major variables including U.S. real economy indicators, next week's European Central Bank (ECB) monetary policy meeting, the full-scale earnings announcements of major tech companies at the end of July, and the U.S. Federal Open Market Committee (FOMC)," adding, "Individual sector and stock-specific trends are expected to continue."

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