KOSPI Ends Up Over 1% on Institutional Buying... Settles Above 2350 Level

Foreigners Hold 'Palja' for Four Consecutive Days
KOSDAQ Also Closes Up 1.32%

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jaehee] On the 22nd, the KOSPI index rose by more than 1% thanks to buying pressure from institutional investors, settling above the 2350 level.

On that day, the KOSPI index closed at 2356.73, up 1.19% (27.78 points) from the previous trading day.

The index opened at 2340.00, up 0.47% (11.05 points) from the previous trading day, and traded around the 2340 level during the morning session. However, it expanded its gains in the afternoon session and settled above the 2350 level.

By investor type, individuals and foreigners sold stocks worth 565.7 billion KRW and 4.4 billion KRW respectively to realize profits. Meanwhile, institutions net bought stocks worth 585.4 billion KRW.

The domestic stock market on this day is interpreted as being influenced by the strong U.S. stock market, which showed strength due to stronger-than-expected consumer data overnight.

According to the U.S. Conference Board, the Consumer Confidence Index for December was 108.3, significantly exceeding the Bloomberg consensus forecast of 101, marking the highest level since April.

Additionally, strong earnings from Nike and FedEx also boosted investor sentiment.

The Dow Jones Industrial Average rose 1.60% from the previous close, while the Standard & Poor's (S&P) 500 index (1.49%) and the tech-heavy Nasdaq index (1.54%) also closed with significant gains.

Seo Sangyoung, Head of Media Content at Mirae Asset Securities, stated, "The U.S. stock market's rise, supported by improved consumer confidence and easing recession concerns, is having a positive impact on Korea as well."

However, the continued selling trend by foreigners for four consecutive days is seen as a downside.

Lee Kyungmin, a researcher at Daishin Securities, analyzed, "The KOSPI rose in sync with the U.S. stock market as net buying of cash stocks centered on financial investment flowed in, but with foreigners net selling cash stocks for four consecutive trading days, further gains are difficult."

Among the top 10 stocks by market capitalization, all except LG Energy Solution (-1.15%) closed higher. These include Samsung Electronics (1.90%), Samsung Biologics (0.73%), SK Hynix (1.54%), LG Chem (0.97%), Samsung Electronics Preferred (0.94%), Samsung SDI (0.47%), Hyundai Motor (1.60%), NAVER (2.50%), and Kia (2.42%).

By sector, all sectors except machinery (-0.17%) rose. The top performers were transportation and warehousing (3.19%), services (1.81%), transportation equipment (1.77%), medical precision (1.58%), securities (1.57%), textiles and apparel (1.41%), and chemicals (1.41%).

The KOSDAQ index closed at 715.02, up 1.32% (9.32 points) from the previous trading day.

The index started the day at 710.47, up 0.68% (4.77 points) from the previous trading day, gradually increasing its gains.

On the KOSDAQ, individuals alone sold stocks worth 238.5 billion KRW to realize profits, while foreigners and institutions bought stocks worth 73.7 billion KRW and 175.8 billion KRW respectively.

Among the top 10 KOSDAQ stocks by market capitalization, all except Studio Dragon (-0.45%) closed higher. These include Celltrion Healthcare (2.00%), EcoPro BM (1.40%), L&F (5.76%), Kakao Games (2.77%), HLB (4.20%), EcoPro (0.34%), Pearl Abyss (2.53%), Celltrion Pharm (1.85%), and Rino Industries (3.14%).

By sector, all sectors except telecommunications services (-0.78%) rose. These include transportation equipment parts (2.31%), IT parts (2.15%), internet (1.87%), and semiconductors (1.84%).

On this day, the trading value on the KOSPI and KOSDAQ markets was recorded at 5.991 trillion KRW and 4.373 trillion KRW respectively.

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