Foreigners and Institutions 'Buy' Boost KOSPI by 0.38%... KOSDAQ Surpasses 900 Mark for the First Time in 11 Months

Exchange Rate Drops 11.5 Won to 1298.9 Won
"US Inflation Pressure Eases"

The KOSPI index closed higher for the sixth consecutive trading day as foreigners and institutions recorded net buying dominance. The KOSDAQ index surpassed the 900-point mark for the first time in 11 months.

Image source=Yonhap News

On the 14th, the KOSPI index closed at 2,571.49, up 9.83 points (0.38%) from the previous trading day. The index started the day at 2,580.10, up 18.44 points (0.72%), then turned downward to as low as 2,560.53 before recovering its upward momentum. It even rose to 2,581.74 during the session but gave back some gains. Individual investors sold a net 411.1 billion KRW worth, while foreigners and institutions bought net amounts of approximately 187.1 billion KRW and 240.7 billion KRW, respectively.

Among the top market capitalization stocks, POSCO Holdings recorded the largest gain, rising 6.26%. This was followed by Naver (1.32%), SK Hynix (0.68%), and Samsung Biologics (0.25%). POSCO Future M, part of the POSCO Group, showed an increase of over 13%. On the other hand, Samsung Electronics (-1.51%), Kia (-1.50%), Hyundai Motor (-1.41%), Samsung SDI (-0.91%), and LG Energy Solution (-0.83%) declined. LG Chem remained flat.

By sector, non-metallic minerals (9.65%), steel & metals (4.72%), construction (1.89%), distribution (1.66%), medical precision (1.55%), and finance (1.40%) rose. Meanwhile, electrical & electronics (-0.97%), transportation equipment (-0.51%), pharmaceuticals (-0.13%), food & beverage (-0.02%), and textiles & apparel (-0.02%) fell.

On the day, the won-dollar exchange rate closed at 1,298.9 KRW, down 11.5 KRW from the previous day. It fell below 1,300 KRW for the first time in fifteen days based on closing prices. The dollar weakened as the U.S. Producer Price Index (PPI) followed the March Consumer Price Index (CPI) in showing a slowdown. Expectations grew that the Federal Reserve's monetary tightening stance would come to an end, leading to a decline in the dollar's value.

Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "Both the U.S. CPI and PPI indices have slowed, easing inflationary pressures," adding, "The U.S. stock market also rose, led by tech stocks, restoring risk appetite." He further noted, "Secondary battery-related small-cap stocks showed strength, with POSCO Holdings gaining on news that it is considering supplying cathode and anode materials through steel supply and electric vehicle business cooperation with Japan's Honda Motor."

The U.S. March PPI fell 0.5% month-on-month, marking the largest drop since April 2020. Compared to a year ago, the PPI increase narrowed to the high 2% range. Considering that wholesale price increases are eventually passed on to consumer prices, this is interpreted as a signal that inflationary pressures have eased.

The KOSDAQ index closed above 900 for the first time since May 4 of last year, finishing at 903.84, up 9.59 points (1.07%) from the previous day. Individual investors sold a net 77.2 billion KRW, while foreigners and institutions bought net amounts of approximately 7.6 billion KRW and 83.4 billion KRW, respectively.

Among the top market capitalization stocks, L&F showed the largest gain, rising 5.72%. This was followed by JYP Ent. (5.46%), EcoPro BM (3.35%), Pearl Abyss (1.29%), EcoPro (0.66%), and Kakao Games (0.48%). Conversely, Celltrion Healthcare (-3.75%), Celltrion Pharm (-1.79%), and HLB (-1.46%) declined. Osstem Implant remained flat.

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