KOSPI Hits 2400 Level Intraday After 2 Months... Large-Scale 'Buying' by Foreigners and Institutions

[Image source=Yonhap News]

[Asia Economy Reporter Lee Myunghwan] On the afternoon of the 8th, the KOSPI surpassed the 2400 mark for the first time in about two months. Foreign and institutional investors are driving the index's rise through large-scale net selling.

As of 1:50 PM on the day, the KOSPI stood at 2396.27, up 1.03% (24.48 points) from the previous trading day. The KOSPI opened at 2387.20, up 0.65% (15.41 points) from the previous day, and continued its upward momentum. Around 1 PM, the KOSPI even crossed the 2400 mark, reaching 2400.02. This is the first time the KOSPI has recovered above 2400 during intraday trading since September 15, about two months ago.

Institutional and foreign investors are jointly supporting the index with large-scale net purchases. At the same time, institutional investors have bought stocks worth 327.5 billion KRW, and foreign investors have purchased 183.3 billion KRW worth of stocks. On the other hand, individual investors are net sellers with 513.7 billion KRW.

The market rise appears to be influenced by improved supply and demand conditions due to the decline in the won-dollar exchange rate. At 2 PM in the Seoul foreign exchange market, the won-dollar exchange rate dropped 5.58 KRW from the previous day to 1387.46 KRW, falling to the mid-1380s. Lee Kyungmin, a researcher at Daishin Securities, noted, "Rather than any special issue, the sharp drop in the won-dollar exchange rate and the inflow of net buying by foreign investors are the main factors. In particular, funds flowing into semiconductors are leading to the KOSPI's rise."

Among the top market capitalization stocks, semiconductor-related stocks are showing gains of over 2%. Samsung Electronics is trading at 61,700 KRW, up 2.49% (1,500 KRW) from the previous day, and SK Hynix is up 2.08% (1,800 KRW) at 88,300 KRW. Samsung Electronics Preferred shares are also trading higher at 55,600 KRW, up 2.77% (1,500 KRW) from the previous day.

Conversely, stocks related to secondary batteries are underperforming. This is presumed to be due to concerns that legislation, including the Inflation Reduction Act (IRA), could be affected ahead of the U.S. midterm elections. Samsung SDI is trading down 1.89% (14,000 KRW) at 726,000 KRW, and LG Chem is down 1.70% (12,000 KRW) at 692,000 KRW. LG Energy Solution is trading unchanged at 587,000 KRW.

At the same time, the KOSDAQ index stands at 710.88, up 1.48% (10.40 points) from the previous day. The KOSDAQ opened at 703.36, up 0.41% (2.88 points), and is gaining upward momentum.

Foreign and institutional investors' buying activity is also notable in the KOSDAQ. Foreigners and institutions have purchased stocks worth 46.9 billion KRW and 41.8 billion KRW, respectively. Individual investors are net sellers with 83.8 billion KRW.

Among the top market capitalization stocks in KOSDAQ, the decline in secondary battery-related stocks is prominent. Ecopro BM traded down 0.74% (800 KRW) at 107,900 KRW, ceding the top spot in KOSDAQ to Celltrion Healthcare. Ecopro (-3.34%) and L&F (-0.92%) are also declining. Stocks related to gaming and entertainment such as Studio Dragon (5.18%), Kakao Games (4.07%), and Pearl Abyss (1.09%), as well as bio-related stocks like Celltrion Healthcare (2.54%), Celltrion Pharm (3.36%), and HLB (0.80%), are rising.

However, despite the rise, there is advice to focus on companies' fundamentals. Researcher Lee Kyungmin said, "Fundamentals remain weak. Global GDP growth forecasts continue to be revised downward, and the recent start of a rebound, marked by a slowdown in interest rate hikes, is accompanied by liquidity and financial market instability and increased economic uncertainty." He added, "Because the economy is unstable, the stock market is ironically rebounding."

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