KOSPI Holds 2620 Level as Foreigners Switch to Net Buying... Growing Expectations for China Economic Stimulus

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The KOSPI index closed above the 2620 level on the 16th, recovering due to foreign investors' intraday net buying.

On the day, the KOSPI closed at 2625.79, up 0.66% (17.25 points) from the previous session. The KOSPI opened at 2623.57, up 0.58% (15.03 points) from the previous close, but fluctuated around the 2610 level during the session before recovering above 2620, supported by foreign net buying.

Foreign investors led the index's rise by net buying stocks worth 417.8 billion KRW in the KOSPI market. In contrast, individual and institutional investors sold stocks worth 204.3 billion KRW and 214.7 billion KRW, respectively.

Foreign investors switched to net buying in the afternoon session.

Although the market showed weakness the previous day due to the announcement of a slowdown in China's economic recovery, expectations for China's economic stimulus measures spread today, acting as a positive factor for the market.

China is reportedly considering issuing special government bonds worth 1 trillion yuan (approximately 178.8 trillion KRW) to be used for new infrastructure construction and other purposes.

Despite digesting major events this week such as the U.S. May Consumer Price Index (CPI) release and the June Federal Open Market Committee (FOMC) regular meeting, the KOSPI index held above the 2600 level and closed without significant volatility.

Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "After digesting major macroeconomic events, the market is expected to refocus on fundamental changes starting next week. As the index's upward trend and tech stock concentration since mid-last month have raised concerns about short-term overheating, caution is needed against potential pressure from profit-taking sales."

The top 10 KOSPI stocks by market capitalization closed mixed. Samsung Electronics (0.42%), LG Energy Solution (0.51%), LG Chem (2.91%), Samsung Electronics Preferred (0.66%), POSCO Holdings (1.81%), and NAVER (1.00%) ended higher, while SK Hynix (-0.08%), Samsung Biologics (-0.39%), and Hyundai Motor (-0.15%) declined. Samsung SDI closed flat.

By sector, textiles and apparel (2.70%), transportation and warehousing (1.49%), machinery (1.33%), paper and wood (1.18%), and chemicals (1.15%) rose, whereas medical precision (-0.70%), telecommunications (-0.63%), and securities (-0.30%) fell.

The KOSDAQ index closed at 887.95, up 1.13% (9.91 points) from the previous session.

The index started the day at 882.45, up 0.50% (4.41 points) from the previous close, and extended gains during the session.

By investor type, foreign and institutional investors net bought stocks worth 73.3 billion KRW and 89.5 billion KRW, respectively, while individuals net sold stocks worth 150.4 billion KRW.

Among the top 10 KOSDAQ stocks by market capitalization, most closed higher. EcoPro BM (2.90%), EcoPro (4.23%), Celltrion Healthcare (2.27%), L&F (3.52%), HLB (0.89%), Celltrion Pharm (0.97%), Pearl Abyss (0.20%), and Osstem Implant (0.05%) rose. JYP Ent. (-0.73%) and Kakao Games (-0.13%) declined.

By sector, finance (3.19%), general electric and electronics (2.81%), telecommunications equipment (2.10%), construction (1.87%), distribution (1.46%), digital content (1.33%), and chemicals (1.30%) closed higher, while broadcasting services (-0.59%), telecommunications and broadcasting services (-0.46%), and paper and wood (-0.19%) declined.

On the day, the daily trading value was recorded at 12.2761 trillion KRW for the KOSPI market and 8.4022 trillion KRW for the KOSDAQ market.

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