KOSPI Extends Gains, Settles at 2390 Level... Foreign Investors Turn to 'Buy'

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] The KOSPI gradually expanded its gains in the morning session on the 8th, settling above the 2390 level. Foreign investors, who were net sellers early in the session, turned to a buying stance.

As of 11 a.m. that day, the KOSPI was at 2391.49, up 0.83% (19.70 points) from the previous trading day. The KOSPI opened at 2387.20, up 0.65% (15.41 points) from the previous day, and has been gradually increasing its gains.

Among KOSPI investors, institutional investors showed the strongest buying momentum, purchasing stocks worth 133.4 billion KRW. Foreign investors, who were selling early in the session, also turned to net buying with purchases worth 67 billion KRW. On the other hand, individual investors sold off stocks worth 201.1 billion KRW.

Among the top market capitalization stocks, semiconductor stocks are leading the gains. SK Hynix is trading at 88,600 KRW, up 2.43% (2,100 KRW) from the previous day, and Samsung Electronics is also up 2.16% (1,300 KRW) at 61,500 KRW. Conversely, secondary battery-related stocks are weak due to concerns that legislation including the Inflation Reduction Act (IRA) in the U.S. might be affected ahead of the U.S. midterm elections. LG Chem is trading down 2.41% (17,000 KRW) at 687,000 KRW, while Samsung SDI (-2.03%) and LG Energy Solution (-0.17%) are also declining.

By sector, transportation and warehousing (2.50%), medical precision instruments (2.43%), and service industries (2.10%) indices are rising more than 2%. Meanwhile, insurance (-1.65%) and non-metallic minerals (-0.82%) are falling.

At the same time, the KOSDAQ index is at 711.95, up 1.64% (11.47 points) from the previous trading day. The KOSDAQ opened at 703.36, up 0.41% (2.88 points), and is increasing its upward momentum.

On the KOSDAQ, foreign investors are showing strong buying momentum. Foreigners are purchasing stocks worth 40 billion KRW, and institutions are also net buyers with 11 billion KRW. Individual investors are selling stocks worth 46.9 billion KRW.

Among the top market capitalization stocks on the KOSDAQ, secondary battery-related stocks are also experiencing significant declines. EcoPro is trading down 2.18% (3,000 KRW) at 134,900 KRW, along with Cheonbo (-0.61%) and L&F (-0.46%). Meanwhile, game-related stocks such as Kakao Games (4.70%) and Pearl Abyss (2.95%), as well as pharmaceutical-related stocks like Celltrion Healthcare (2.99%), Celltrion Pharm (2.75%), and HLB (1.61%) are rising.

By sector on the KOSDAQ, publishing and media replication (4.07%), digital content (3.35%), and entertainment culture (2.70%) are on the rise. Only other manufacturing (-0.46%) and finance (-0.30%) indices are slightly down.

The domestic stock market appears to be rising due to improved foreign investor demand conditions influenced by a weaker dollar. As of 11:18 a.m., the won-dollar exchange rate in the Seoul foreign exchange market was at 1,389.24 KRW, down 3.8 KRW from the previous day, moving within the 1,380 KRW range. This is the first time the won-dollar exchange rate has recorded the 1,380 KRW level since September 21.

Seo Sang-young, head of the Media Content Division at Mirae Asset Securities, analyzed, "The U.S. stock market showed strength in most stocks based on a weaker dollar ahead of the midterm elections, which will have a positive impact on the Korean stock market. Considering the non-deliverable forward (NDF) won-dollar exchange rate, the sustained won appreciation trend is expected to positively influence foreign investor demand, acting as a factor to improve investment sentiment."

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