KOSPI Closes Just Below 2400 Amid Dollar Weakness and Semiconductor Stock Rally... Institutions and Foreigners Lead the Charge

[Image source=Yonhap News]

[Asia Economy Reporter Lee Myunghwan] On the 8th, the KOSPI closed near the 2400 level. The dollar weakened ahead of the U.S. midterm elections, and large semiconductor stocks led a strong performance. Foreign and institutional investors drove the index higher with large-scale buying.

On that day, the KOSPI closed at 2399.04, up 1.15% (27.25 points) from the previous trading day. The KOSPI opened at 2387.20, up 0.65% (15.41 points) from the previous day, and gradually increased its upward momentum. Around 1 p.m., the KOSPI surpassed the 2400 mark, reaching 2400.02. This was the first time the KOSPI recovered the 2400 level during intraday trading since September 15, about two months ago.

Institutional and foreign investors led the index rise with large-scale buying. Institutional investors purchased stocks worth 440.5 billion KRW, and foreigners bought 278.3 billion KRW worth of stocks. Conversely, individual investors sold a net 723.8 billion KRW.

The market rise that day appears to have been influenced by improved supply and demand conditions due to the decline in the won-dollar exchange rate. The won-dollar exchange rate closed at 1384.90 KRW, down 16.3 KRW from the previous day, falling to the mid-1380s. Kim Seokhwan, a researcher at Mirae Asset Securities, explained, "Ahead of the U.S. midterm election results, the dollar weakened due to political uncertainty, which expanded the won's strength. The increased inflow of institutional net buying and the strong performance of large semiconductor stocks drove the index rise."

Lee Kyungmin, a researcher at Daishin Securities, also attributed the market rise that day to "the sharp drop in the won-dollar exchange rate and the inflow of net buying by foreign investors rather than any special issue." He added, "In particular, funds flowing into semiconductors have led to the KOSPI's rise."

[Image source=Yonhap News]

Among the top market capitalization stocks, semiconductor-related stocks rose. Samsung Electronics closed at 61,800 KRW, up 2.66% (1,600 KRW) from the previous day, settling above the 60,000 KRW mark. Other stocks such as SK Hynix (1.39%) and Samsung Electronics Preferred (2.96%) also rose.

NAVER also closed at 177,500 KRW, up 5.03% (8,500 KRW) from the previous day, returning to the top 10 in market capitalization. NAVER's fintech and content sales were strong in its earnings announcement the day before, driving the over 5% rise.

On the other hand, secondary battery-related stocks all declined. This is interpreted as concerns that legislation, including the Inflation Reduction Act (IRA), could be affected ahead of the U.S. midterm elections. LG Chem closed at 691,000 KRW, down 1.85% (13,000 KRW) from the previous day, and Samsung SDI also fell by 1.35%.

By sector, transportation and warehousing (2.81%), services (2.20%), pharmaceuticals (1.75%), and electrical and electronics (1.66%) rose. Insurance (-0.81%) and steel and metals (-0.67%) declined slightly.

The KOSDAQ index closed at 713.33, up 1.83% (12.85 points) from the previous day. The KOSDAQ opened at 703.36, up 0.41% (2.88 points), and gradually increased its upward momentum.

Foreign and institutional investors also showed strong buying in KOSDAQ. Foreigners and institutions net bought 94.1 billion KRW and 82.7 billion KRW, respectively. Meanwhile, individual investors sold 171.8 billion KRW.

Most of the top market capitalization stocks in KOSDAQ closed higher, except for EcoPro, which fell 2.54% (3,500 KRW) to 134,400 KRW. Stocks showing gains centered on game and entertainment stocks such as Studio Dragon (5.64%) and Kakao Games (4.32%), as well as pharmaceutical and bio stocks like Celltrion Pharm (4.43%) and Celltrion Healthcare (3.29%).

By sector in KOSDAQ, semiconductors rose sharply by 3.17%, followed by entertainment culture (2.86%), non-metallic minerals (2.54%), and distribution (2.41%). Other manufacturing (-0.80%) and finance (-0.39%) declined slightly.

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