KOSPI Rises for 2 Consecutive Days on Individual and Foreign Buying... KOSDAQ Returns to 800 Level

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The KOSPI closed higher for the second consecutive trading day as individuals and foreigners showed net buying dominance. Although it started lower due to concerns over tightening and the influence of the U.S. stock market closing down, it turned upward thanks to foreign buying momentum.

On the 31st, the KOSPI index closed at 2472.05, up 21.12 points (0.86%) from the previous day. The index started at 2433.47, down 17.46 points (0.71%), but then narrowed its losses and turned positive. Individuals net bought about 47.3 billion KRW, and foreigners also purchased 209.5 billion KRW, showing net buying dominance for the first time in four trading days. Meanwhile, institutions sold 270.4 billion KRW, marking three consecutive days of net selling.

By sector, the medical precision sector rose the most, up 2.49%. This was followed by steel & metals (2.29%), transportation & warehousing (1.48%), electrical & electronics (1.41%), and textiles & apparel (1.33%). On the other hand, machinery and telecommunications fell by 2.17% and 1.01%, respectively.

Among the top market capitalization stocks, most showed gains except LG Energy Solution (-0.64%) and Samsung Biologics (-0.12%). Samsung SDI (3.46%), LG Chem (3.44%), SK Hynix (2.15%), Samsung Electronics (1.53%), Kia (0.87%), NAVER (0.84%), Kakao (0.27%), and Hyundai Motor (0.26%) rose in that order.

Lee Kyung-min, a researcher at Daishin Securities, explained, "Amid repeated remarks by Federal Reserve (Fed) officials seemingly trying to curb expectations of a slowdown in monetary policy, U.S. Treasury yields rose again yesterday, and major U.S. stock markets recorded declines of around 1%. Nevertheless, the KOSPI showed a relatively firm trend today." He added, "The semiconductor sector's strength supported the stock market rise, with Samsung Electronics and SK Hynix contributing about 50% to the KOSPI's increase."

The intraday new high of the won-dollar exchange rate calming down also influenced supply and demand. The won-dollar exchange rate rose to 1352.3 KRW, surpassing the intraday new high of 1350.8 KRW for the first time in two trading days, but then fell to close at 1337.6 KRW per dollar, down 9.1 KRW from the previous day's closing price.

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "Foreigners' concentrated buying in the electrical & electronics sector led to the strength of Samsung Electronics and SK Hynix, driving the index's rise."

The KOSDAQ index also showed weakness before turning upward and continuing its trend. The KOSDAQ started at 792.33, down 4.69 points (0.59%) from the previous day, but after fluctuating, it surpassed the 800 mark. It closed at 807.04, up 10.02 points (1.26%). This is the first time in three trading days that the KOSDAQ has closed above 800. Individuals sold about 76.4 billion KRW, but foreigners and institutions net bought 59.5 billion KRW and 11.2 billion KRW, respectively, supporting the index's rise.

Among the top market capitalization stocks, Alteogen was the only one to show weakness, falling 0.47%. HLB rose the most, up 6.14%, followed by EcoPro (5.90%), Pearl Abyss (1.61%), Celltrion Healthcare (0.98%), L&F (0.83%), Celltrion Pharm (0.77%), Kakao Games (0.76%), and EcoPro BM (0.09%). Studio Dragon remained flat.

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