Korean Stock Market Starts Higher... Rising Trend Despite 7 Consecutive Months of Trade Deficit

KOSPI, Only Foreigners Net Buyers
Foreigners Buy Samsung Electronics for 15.1 Billion KRW
KOSDAQ, Individuals Sole Net Buyers

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Yoon-joo] On the 1st, the KOSPI and KOSDAQ opened higher. Despite the announcement that the trade balance recorded a deficit for seven consecutive months immediately after the market opened, the KOSPI is maintaining its upward trend. However, the KOSDAQ is engaged in a tug-of-war around the 695 level.

As of 9:23 a.m., the KOSPI is trading at 2308.69, up 0.66% (15.08 points) from the previous trading day. It started the day at 2301.58, up 0.35% (7.97 points), but expanded its gains following the release of export statistics.

The KOSPI is being driven by foreign investors. Foreigners are net buyers of 92.8 billion KRW alone. In contrast, institutions and individuals are net sellers of 38.9 billion KRW and 52.1 billion KRW, respectively.

Looking at the top market capitalization stocks, Samsung Electronics +1.18%, LG Energy Solution +2.27%, Samsung Biologics +0.11%, Samsung SDI +0.27%, LG Chem +0.27%, and Kia +0.15% are on the rise. Meanwhile, SK Hynix -0.48%, Hyundai Motor -0.91%, Naver -1.18%, and Celltrion -1.56% are declining.

In particular, Samsung Electronics, after foreigners net bought 247 billion KRW yesterday, is also purchasing 15.1 billion KRW worth during the session today. The current stock price is 60,000 KRW. This is the first time in about four months since June 16 (closing price basis) that Samsung Electronics’ stock price has risen to the 60,000 KRW level.

As of 9:32 a.m., the KOSDAQ is at 696.19, up 0.12% (0.86 points) from the previous trading day. The KOSDAQ started at 695.45, up 0.02%, but turned downward after the export statistics announcement and is currently engaged in a tug-of-war.

The KOSDAQ is being supported solely by individual investors, who are net buyers of 21.2 billion KRW. Foreigners and institutions are net sellers of 13.1 billion KRW and 5.5 billion KRW, respectively.

Among the top market capitalization stocks, EcoPro BM +0.52%, L&F +1.78%, Kakao Games +0.13%, Chunbo +0.14%, and Rino Industrial +0.44% are rising. However, Celltrion Healthcare -1.01%, HLB -2.72%, EcoPro -0.28%, Pearl Abyss -0.12%, and Celltrion Pharm -1.03% are falling.

Meanwhile, South Korea’s trade balance recorded a deficit for seven consecutive months. This is the longest deficit period in 25 years since the five consecutive months of deficit during the 1997 foreign exchange crisis.

Exports in October were $52.48 billion, down 5.7% compared to the same month last year, while imports increased by 9.9% to $59.18 billion. As a result, the trade balance recorded a deficit of $6.7 billion (approximately 9.6 trillion KRW).

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