KOSPI Starts Lower, Closes Higher at 2590 Level on Institutional Buying...

Institution Buys for the First Time in 7 Trading Days

The KOSPI index closed higher after four trading days due to institutional buying dominance.

[Image source=Yonhap News]

On the 22nd, the KOSPI index closed at 2,593.70, up 11.07 points (0.43%) from the previous trading day. The index started at 2,575.65, down 6.98 points (0.27%), but reversed to rise to 2,597.76. Individuals and foreigners sold about 110.6 billion KRW and 125.3 billion KRW respectively, while institutions alone net bought approximately 236.8 billion KRW. Institutions turned to buyers for the first time in seven trading days.

Among the top market capitalization stocks, POSCO Holdings rose 3.53%, LG Energy Solution 1.97%, Samsung Electronics 1.13%, and NAVER 0.74%. On the other hand, Hyundai Motor fell 0.98%, SK Hynix 0.96%, Kia 0.60%, LG Chem 0.28%, and Samsung Biologics 0.13%. Samsung SDI remained flat.

By sector, steel & metals rose 1.74%, insurance 1.37%, electrical & electronics 0.78%, paper & wood 0.77%, and non-metallic minerals 0.69%. Meanwhile, machinery fell 1.66%, transportation equipment 0.51%, electric & gas utilities 0.31%, textiles & apparel and precision medical instruments 0.25%.

Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "Despite the U.S. stock market falling overnight due to Federal Reserve Chairman Jerome Powell's hawkish remarks and semiconductor-centered selling, the domestic market rebounded after a decline at the start and rose due to buying interest."

Chairman Powell testified before the House Financial Services Committee, stating, "The majority of Federal Open Market Committee (FOMC) members expect two interest rate hikes this year." He also said, "Inflation has somewhat eased since mid-last year," but added, "Inflationary pressures remain high, and there is still a long way to go to bring it down to the 2% target."

Earlier on the 14th, the Fed held the base interest rate steady at the FOMC meeting but raised the year-end rate forecast (median) on the dot plot from 5.1% to 5.6%, suggesting the possibility of two baby steps (0.25 percentage point hikes) within the year.

Lee Kyung-min, a researcher at Daishin Securities, said, "The index rose as institutional funds, mainly from pension funds, flowed in, attempting to recover the 2,600 level," adding, "This was a rebound buying following the recent continuous decline in the index."

On the day, the USD/KRW exchange rate closed at 1,294.9 KRW, up 2.9 KRW from the previous day.

The KOSDAQ index closed at 876.38, up 0.68 points (0.08%). It started at 870.79, down 4.91 points (0.56%), but rose to as high as 880.12. Individuals net sold 44 billion KRW, while foreigners and institutions net bought about 35.7 billion KRW and 45.9 billion KRW respectively.

Among the top market capitalization stocks, L&F rose 1.63%, EcoPro BM 1.34%, Celltrion Healthcare 1.33%, Celltrion Pharm 1.16%, and Pearl Abyss 0.59%. Kakao Games fell 1.40%, HLB 1.11%, and JYP Ent. 0.30%. EcoPro and Osstem Implant remained flat.

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