[Weekly Market Review] KOSPI Rises from 2090 to 2150 but Fluctuates Around 2100 for 3 Weeks... Retail Investors Accumulating 'Inverse' Funds

Closed up 2.81% for the week from 2093.48 on the 29th of last month to 2152.41 on the 3rd of this month
Individuals ranked 1st in net buying of 'Inverse'
2nd place is SK Biopharm

[Asia Economy Reporter Oh Ju-yeon] From the 29th of last month to the 3rd of this month, the domestic stock market focused on corporate earnings (fundamentals) and economic indicators for the second quarter of this year, showing insensitivity to positive news, resulting in limited index gains and momentum. This is interpreted as the market's judgment that while current stock prices are in an overheated zone, fundamentals do not follow suit. The securities industry expects the domestic stock market to shift to a fundamentals-driven market this month. Amid this atmosphere, individual investors are buying 'Inverse' Exchange Traded Funds (ETFs) that bet on index declines.

According to the Korea Exchange on the 4th, from the 29th of last month to the 3rd of this month, the most purchased stock by individuals in the KOSPI market was 'KODEX 200 Futures Inverse 2X.' Individuals bought a total of 210.7 billion KRW worth.

The second most purchased was SK Biopharm, with 98.4 billion KRW worth bought. SK Biopharm recorded a so-called 'ttasang' after its listing on the 2nd and hit the upper price limit again on the 3rd. On the listing day, SK Biopharm's opening price was 98,000 KRW, double the public offering price of 49,000 KRW, and it immediately hit the upper price limit, closing at 127,000 KRW, achieving 'ttasang.' 'Ttasang' means the opening price is twice the public offering price, followed immediately by hitting the upper price limit. On the 3rd, after 'ttasang,' the closing price was 165,000 KRW, ending the day at the upper price limit.

On the 29th, the KOSPI index opened at 2105.54, down 29.11 points (1.36%) from the previous trading day. Dealers are seen busy with their work in the dealing room of Hana Bank in Jung-gu, Seoul. In the foreign exchange market, the won-dollar exchange rate started at 1205.0 won, up 4.4 won from the previous trading day. Photo by Kim Hyun-min kimhyun81@

Investors' strong interest in SK Biopharm expanded to the pharmaceutical and bio sectors, with Samsung Biologics ranking third in net purchases. Also, the investment sentiment that SK Biopharm could not absorb spread to SK Group stocks, leading to heavy buying of the holding company SK.

Individuals bought 82 billion KRW worth of SK shares. Notably, calculating net purchases since last month amounts to 740 billion KRW, more than double the net purchase volume of 249.9 billion KRW in May, a month earlier.

Additionally, individuals added Korea Electric Power Corporation (65.3 billion KRW), Korea Technology Group (46.3 billion KRW), Hyundai Motor (43.5 billion KRW), and Namsun Aluminum (37.2 billion KRW) to their baskets.

In contrast to individuals buying inverse ETFs, foreigners and institutions showed a contrasting trend by purchasing ETFs that profit from index rises.

Foreigners bought TIGER 200 the most, with net purchases totaling 150.1 billion KRW, followed by Kakao (131.9 billion KRW), Samsung Electronics (55.9 billion KRW), Samsung Electronics Preferred (52.8 billion KRW), and KODEX 200 (47.9 billion KRW) among the top net purchased stocks. Kakao reached an intraday high of 297,000 KRW on the 3rd, setting a 52-week high.

The top net purchase stock for institutions was 'KODEX Leverage,' with 113 billion KRW bought. Next was KODEX WTI Crude Oil Futures (H), with net purchases of 103.2 billion KRW, ranking second.

Institutions also focused on buying NAVER (80.4 billion KRW), SK Telecom (74.1 billion KRW), Samsung SDI (71.1 billion KRW), Samsung Electronics (70 billion KRW), SK Chemical (36.7 billion KRW), LG Innotek (35.3 billion KRW), and SK (34.8 billion KRW).

Lee Kyung-min, a researcher at Daishin Securities, evaluated, "The recent rise in the KOSPI has been limited, but the decline has also been limited." He analyzed, "This is because economic indicator surprises continue, and earnings expectations are being incorporated," adding, "Expectations are rising again, and the gap between fundamentals and stock prices is not easily narrowing."

He continued, "If fundamentals rise quickly, the period adjustment may continue a bit longer, increasing the possibility of narrowing the gap. However, with economic indicator expectations expanded to an unprecedented level and earnings expectations rising, even if economic indicators and earnings improvements become visible, short-term volatility may increase due to the gap between expectations and reality."