"Foreign Investors Return" KOSPI and KOSDAQ Close Up Over 2%

KOSPI Closes Up 130.09 Points at 3,960.87
Eased Exchange Rate Concerns... Foreign Investors Turn Net Buyers
Broad Buying in AI, Power Infrastructure, Secondary Batteries, Internet/Platform, and Financial Stocks

On November 26, the Korean stock market closed higher, buoyed by simultaneous buying from foreign investors and institutions. Eased concerns over the strong won-dollar exchange rate and expectations of a U.S. Federal Reserve rate cut in December boosted investor sentiment.

Foreign Investors Turn Net Buyers of KOSPI After Four Sessions

On the 26th, the closing price of the KOSPI was displayed on the electronic board in the dealing room at the Hana Bank headquarters in Jung-gu. Photo by Yonhap News.

On this day, the KOSPI index closed at 3,960.87, up 103.04 points (2.67%) from the previous day. The index opened at 3,891.88, up 34.10 points (0.88%), and continued its upward momentum throughout the session, closing strongly above the 3,960 mark. Foreign investors and institutions were net buyers, purchasing 523.5 billion won and 1.2242 trillion won worth of shares, respectively. Individual investors sold a net 1.801 trillion won.

By sector, machinery and equipment (5.04%), construction (4.52%), general services (4.29%), chemicals (3.57%), securities (3.53%), and IT services (3.34%) all posted strong gains. Most sectors, including insurance, precision medical devices, electrical and electronics, and manufacturing, also rose by 2-3%.

Buying activity was concentrated in AI and power infrastructure, secondary batteries, internet and platform, and financial stocks. Among the top market cap stocks, Doosan Enerbility (5.71%), LG Energy Solution (5.32%), Naver (4.15%), Samsung Electronics (3.52%), Samsung Life Insurance (3.34%), Samsung C&T (3.28%), Samsung Electronics Preferred (3.20%), Celltrion (2.68%), Korea Electric Power Corporation (2.52%), and KB Financial Group (2.47%) all closed higher.

The KOSDAQ index closed at 877.32, up 21.29 points (2.49%) from the previous day. The index started at 863.28, up 7.25 points (0.85%), and extended its gains throughout the session, ending strongly in the upper 870 range. Foreign investors and institutions were net buyers of around 210 billion won and 80 billion won, respectively, while individual investors were net sellers of about 270 billion won.

The KOSDAQ market saw a rally centered on secondary battery, bio, and robotics-related stocks. Most stocks, including Ecopro (11.04%), Kolon TissueGene (9.24%), Ecopro BM (9.17%), LIG ChemBio (7.35%), Voronoi (4.79%), ABL Bio (4.46%), EO Technics (3.85%), and Robotis (3.59%), closed higher.

"Investor Sentiment Improves as Exchange Rate Falls"

Lim Jeongeun, a researcher at KB Securities, said, "As concerns over the strong exchange rate eased and foreign investors turned net buyers, risk appetite recovered, resulting in gains of over 2% in both the KOSPI and KOSDAQ markets. Foreign investors became net buyers of KOSPI stocks for the first time in four sessions, and institutional net buying also expanded."

In particular, the won-dollar exchange rate fell by more than 15 won during the session, dropping below the 1,460 won level and contributing to improved investor sentiment. Lim noted, "Buying was evenly spread across most sectors. News that the Ministry of Economy and Finance held an emergency meeting to discuss stabilizing the foreign exchange market also contributed to exchange rate stability." She added, "On November 24, the Ministry of Economy and Finance, Ministry of Health and Welfare, Bank of Korea, and National Pension Service formed a 'four-party consultative body' to defend the exchange rate."

Expectations for a rate cut were further fueled by the emergence of Kevin Hassett, a member of the U.S. White House National Economic Council (NEC) known for his preference for monetary easing, as a leading candidate for the next Federal Reserve chair.

Lim added, "On November 27, the Bank of Korea's Monetary Policy Board will hold its final meeting of the year. With most expecting the Bank of Korea to keep the base rate unchanged due to solid growth and a prolonged strong exchange rate, the key will be whether there are any signals of a rate cut next year."

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