KOSPI Attempts to Stabilize at 2420... Foreigners Sell While Individuals Buy "Weak Rebound Buying Pressure"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 15th, the KOSPI, which started higher, is attempting to settle above the 2420 level as it continues its upward momentum. Although concerns over persistently high inflation and aggressive tightening measures remain, the market is maintaining its upward trend. Rather than active trading, a cautious market sentiment is prevailing.

On this day, the KOSPI opened at 2416.01, up 4.59 points (0.19%). As of 11:06 a.m., the KOSPI was at 2419.23, up 0.32%, hovering around the 2420 mark. Since the market opened, only individual investors have been net buyers, currently purchasing about 81.9 billion KRW. Foreigners and institutions have been net sellers, offloading approximately 48.7 billion KRW and 40.1 billion KRW respectively. The KOSDAQ rose 0.40% from the previous trading day to 786.06. Individuals and institutions are net buyers with about 104.6 billion KRW and 25.4 billion KRW respectively, while foreigners are net sellers with about 130.6 billion KRW.

Brokerages expect a positive spillover effect on the Korean market following the rise in the U.S. stock market overnight. The New York stock market rose slightly due to a rebound buying after a sharp decline the previous day. On the 14th (U.S. Eastern Time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 31,135.09, up 30.12 points (0.10%) from the previous session. The Standard & Poor's (S&P) 500 index rose 13.32 points (0.34%) to 3,946.01, and the tech-heavy Nasdaq index rebounded 86.10 points (0.74%) to close at 11,719.68. All three major indices started higher, but the Dow dropped about 0.7% near the close, showing signs of instability. The S&P 500 and Nasdaq indices also reversed to declines of about 0.5% and 0.2% respectively, 30 minutes before closing. However, within 30 minutes, the Nasdaq rebounded about 0.7%, indicating high volatility. Concerns remain over persistent inflationary pressures and the likelihood that the Federal Reserve's aggressive tightening will continue for some time. The previous day saw the three major indices plunge 3% to over 5%, marking the largest drop since June 2020.

Han Ji-young, a researcher at Kiwoom Securities, explained, "The U.S. stock market rebounded after the previous day's 'panic selling' due to an overreaction, but there is no clear upward momentum, limiting the upside. Concerns about entrenched inflation and tightening remain unresolved."

Seo Sang-young, a researcher at Mirae Asset Securities, said, "The positive close of the U.S. stock market will have a favorable impact on the Korean market, but the ongoing high inflation issue in the U.S. and rising short-term Treasury yields remain burdensome. Given the possibility that the Fed's rate hikes may be stronger than expected, rebound buying sentiment is likely to weaken. Therefore, rather than active trading, fluctuations will depend on foreign investor flows and exchange rate changes."

Among the top market capitalization stocks, mixed trends are observed. In the KOSPI market, Samsung SDI is up by over 1%. LG Energy Solution, Hyundai Motor, and Kia are also slightly higher. Conversely, Samsung Biologics is down by over 1%. In the KOSDAQ market, EcoPro is showing a strong gain of over 7%, while L&F and HLB are down by about 3%.

On this day, the won-dollar exchange rate opened at 1,391.0 KRW, up 0.1 KRW from the previous day, and rose to a high of 1,395.10 KRW in early trading.

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