KOSPI Ends Slightly Higher on Foreign Buyers' Return... Semiconductor Stocks Rally, Returning to '60,000 Electronics'

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] On the 15th, the domestic stock market closed mixed due to the rise in the U.S. Producer Price Index (PPI) and the release of China's economic indicators. The KOSPI, which plunged sharply in early trading and briefly fell below the 2300 level, closed slightly higher as foreign investors turned to net buying in the afternoon. Following Taiwan's TSMC's surprise earnings report the previous day, semiconductor-related stocks rose collectively, with Samsung Electronics returning to the 60,000 KRW level.

On the day, the KOSPI closed at 2,330.98, up 0.37% (8.66 points) from the previous trading day. The KOSPI opened at 2,335.12, up 0.55% (12.80 points) from the previous day but soon turned downward, falling more than 1% during the morning session before rising in the afternoon.

By investor type, individuals and institutions sold net amounts of 21 billion KRW and 262.5 billion KRW respectively, while foreign investors alone bought net 262.5 billion KRW. Foreign investors, who were net sellers in the morning session, turned to net buyers in the afternoon.

In the securities market, 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 573.2 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 expectations, the June retail sales surprise was positive," adding, "The market seems to be paying more attention to the improvement in June's real economy indicators and expectations for stimulus measures in the second half rather than China's GDP."

Among the top market capitalization stocks in the securities market, semiconductor-related stocks showed 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 semiconductor industry. Samsung Electronics closed at 60,000 KRW, up 4.35% (2,500 KRW) from the previous day, and SK Hynix also rose 5% (4,700 KRW) to close at 98,700 KRW. Samsung Electronics Preferred Shares also closed higher by 2.24%.

By sector, the electricity and electronics index recorded a notable increase of 3.17%. Textile and apparel (1.63%) and manufacturing (1.22%) also rose. In contrast, transportation and warehousing (-2.30%), telecommunications (-1.65%), and chemicals (-1.74%) declined.

Seokhwan Kim, a researcher at Mirae Asset Securities, commented on the rise in semiconductor-related stocks, saying, "The surprise earnings announcement by TSMC led to a rise in the Philadelphia Semiconductor Index, reflecting a recovery in investor sentiment and expectations for improved second-quarter earnings in the sector," adding, "Despite the strong dollar, foreign investors' purchases in the electricity and electronics sector helped maintain the KOSPI's upward trend."

The KOSDAQ index closed at 762.39, down 0.48% (3.69 points) from the previous day. The KOSDAQ opened at 768.41, up 0.30% (2.33 points) from the previous day, but fell more than 1% before partially recovering losses in the afternoon. By investor type, individuals were the sole net buyers with 193.2 billion KRW, while foreign investors and institutions sold net amounts of 124 billion KRW and 73.2 billion KRW respectively.

Many of the top market capitalization stocks on the KOSDAQ closed lower. EcoPro BM ended trading at 111,500 KRW, down 4.70% (5,500 KRW) from the previous day. Kakao Games (-4.08%), L&F (-2.58%), and Pearl Abyss (-1.33%) also saw significant declines. HLB (0.59%) and Alteogen (0.31%) closed slightly higher.

By sector on the KOSDAQ, the internet sector rose significantly by 1.59%, and semiconductors also increased by 0.90%. Conversely, food and tobacco (-2.86%) and general electrical and electronics (-2.09%) sectors experienced large declines.

The securities industry predicts that the domestic stock market will lack a clear direction for the time being. Yujun Choi, a researcher at Shinhan Financial Investment, said, "There is a possibility that the market will continue to lack direction until the U.S. Federal Open Market Committee (FOMC) meeting," advising, "Attention should be paid to next week's European Central Bank (ECB) monetary policy meeting and the preliminary Purchasing Managers' Index (PMI) release."

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