[Weekly Market Review] Unstoppable High Kick... KOSPI 3000 Pushed Up by Individuals, Foreigners Join In Too

[Asia Economy Reporter Oh Ju-yeon] Since the start of the Year of the Ox, the stock market has literally shown a 'bull market.' Large-cap stocks with high market capitalization surged one after another, pushing the KOSPI past the 3000 mark for the first time in history, closing at 3150 in the first week of January.

Individual investors, who had single-handedly lifted the KOSPI from the 1400 level last year amid the impact of the novel coronavirus disease (COVID-19), realized some profits after the KOSPI surpassed 3000 in the new year. Meanwhile, foreigners and institutions joined the rally late, supporting the index at the 3000 level.

[Image source=Yonhap News]

According to the Korea Exchange on the 9th, the KOSPI rose 2.40% from 2944.45 to 3152.18 during the first week of January, from the 4th to the 8th. During this period, individuals led the market.

From the first trading day of the new year, individuals bought stocks worth 1 trillion KRW. After the KOSPI touched 3000 intraday on the 6th but retreated to the 2960 level and closed lower, individuals purchased stocks worth 1.7 trillion KRW to support the downside of the index.

Foreigners and institutions jumped in late to the KOSPI 3000 level raised by individuals, contributing to the stabilization of the index at 3000.

Foreigners and institutions, who focused on net selling from the 4th to the 6th, switched to net buying worth trillions of KRW alternately on the 7th and 8th. On the 7th, institutions bought stocks worth 1.034 trillion KRW, pushing the KOSPI to 3031.68, and on the 8th, foreigners net bought stocks worth 1.6479 trillion KRW, closing the KOSPI at 3150.18. During this period, individuals realized profits by net selling stocks worth 1.1836 trillion KRW and 559.1 billion KRW, respectively.

Although individuals realized some profits, they still hold a net buying position in cumulative terms. Since the beginning of the year, individuals have net bought stocks worth 1.7459 trillion KRW in the KOSPI market alone, becoming the main force that changed the leading digit of the KOSPI. Foreigners, who switched to large-scale net buying on the 8th, have a cumulative net buying amount of 1.2324 trillion KRW since the start of the year, while institutions have net sold stocks worth 3.2242 trillion KRW.

Meanwhile, the stock most bought by individuals was Samsung Electronics, with net purchases worth 2.0539 trillion KRW, followed by LG Electronics (522.5 billion KRW), SK Biopharm (381.3 billion KRW), and Samsung Electronics preferred shares (357.1 billion KRW).

As for exchange-traded funds (ETFs) that track the index, individuals chose KODEX 200 Futures Inverse 2X, which bets on the downside. Individuals net bought 212.8 billion KRW worth of KODEX 200 Futures Inverse 2X, ranking fifth in net purchases. They also bought KODEX Inverse (165.4 billion KRW), ranking seventh in net purchases, investing a total of over 370 billion KRW in stocks that profit when the index falls.

On the other hand, individuals realized profits by net selling LG Chem, Kakao, SK, Doosan Fuel Cell, Hyundai Motor, SK Telecom, and Hana Financial Group.

Foreigners net bought stocks in the order of LG Chem (364.6 billion KRW), Hyundai Motor (263.3 billion KRW), SK Hynix (258.8 billion KRW), NAVER (162.7 billion KRW), Doosan Fuel Cell (147.7 billion KRW), and Hana Financial Group (128.6 billion KRW).