KOSPI Shows Mixed Trends Early in Session... Reaches 2600 Level on Individual Net Buying

The KOSPI index opened at 2,605.73 on the 26th, up 4.19 points (0.16%) from the previous session. The photo shows the dealing room at the Hana Bank headquarters in Jung-gu, Seoul, that morning. (Photo by Yonhap News)

[Asia Economy Reporter Kum Boryeong] On the 26th, the KOSPI index briefly fell below the 2600 mark due to net selling by foreigners and institutions but recovered above 2600 thanks to net buying by individual investors.

As of 9:25 a.m. that day, the KOSPI stood at 2603.74, up 0.08% (2.20 points) from the previous trading day.

The KOSPI opened at 2605.73, up 0.16% (4.19 points) from the previous day, but turned downward six minutes after the market opened, dropping to 2592.43. However, it resumed its upward trend after 9:22 a.m.

In the KOSPI market, foreigners and institutions net sold 50.2 billion KRW and 146.9 billion KRW, respectively. In contrast, individuals net bought 189.4 billion KRW.

By sector, Paper & Wood (3.04%), Electrical & Electronics (1.01%), and Non-metallic Minerals (0.43%) rose, while Textile & Apparel (0.91%) and Steel & Metals (1.07%) declined.

Among the top 10 companies by market capitalization, Samsung Electronics (1.05%), SK Hynix (0.31%), LG Chem (0.25%), and NAVER (1.08%) rose, while Samsung Biologics (0.75%) and Celltrion (0.61%) fell.

Seo Sang-young, a researcher at Kiwoom Securities, said, "The Korean stock market took a brief pause after hitting an all-time high the previous day. Especially, the Chinese stock market fell 1.19%, indicating a continued tendency for profit-taking, which likely influenced the market in the latter part of the session. The Korean stock market reached an all-time high mainly due to the strength of foreigners who had been expanding net purchases centered on large-cap stocks, but as that strength weakened, the index turned downward. Therefore, the behavior of foreigners is important." He added, "With the dollar weakening and funds flowing into emerging markets, the buying trend is likely to continue. Also, Korea's exports are showing resilience as import demand from the U.S. and Europe increases, which is positive for the profit improvement of export companies."

The KOSDAQ index showed a similar pattern to the KOSPI. At the same time, the KOSDAQ was at 866.53, up 0.16% (1.41 points) from the previous day.

On that day, the KOSDAQ started at 868.60, up 0.40% (3.48 points) from the previous trading day, paused briefly, and then maintained its upward trend.

In the KOSDAQ market, individuals net bought 111.6 billion KRW, while foreigners and institutions net sold 31.4 billion KRW and 74.2 billion KRW, respectively.

By sector, Internet (0.94%) and Paper & Wood (3.66%) rose, while Telecommunication Services (0.42%) and Entertainment & Culture (0.22%) declined.

Among the top market capitalization stocks, Celltrion Pharm (1.98%), Seegene (2.98%), Alteogen (0.31%), and Kakao Games (1.14%) rose, while Celltrion Healthcare (0.09%) and HLB (0.97%) fell.