KOSPI Hits Record High, Closing Above 3220 Driven by Foreign and Institutional 'Buyers'

Foreigners Record Net Buying on All Trading Days Except Three This Month

On the 20th, the KOSPI index, won-dollar exchange rate, and KOSDAQ index are displayed on the electronic board in the dealing room of Hana Bank in Euljiro, Jung-gu, Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Minji Lee] The KOSPI closed above the 3,220 level, setting a new all-time high. It settled above the 3,200 mark for the first time in over three months since the previous closing record of 3,208.99 on January 25.

On the 20th, the KOSPI closed at 3,220.70, up 0.68% (21.86 points) from the previous trading day. Foreign investors were the driving force behind the rise. This month, foreign investors have recorded net purchases on all but three of the 14 trading days. On this day, foreign investors bought stocks worth 327.8 billion KRW. Institutions purchased stocks worth 46.4 billion KRW, while individuals sold stocks worth 389.8 billion KRW.

Lee Kyung-min, a researcher at Daishin Securities, explained, "The KOSPI rose to the 3,220 level as foreign investors switched to net buying. Meanwhile, individual investors have been net sellers for three consecutive trading days, offloading profit-taking shares following recent short-term gains amid concerns over the resumption of short selling on May 3."

Most of the top market capitalization stocks showed gains. Samsung Electronics and SK Hynix rose 0.72% and 0.36%, respectively, compared to the previous trading day. Although the Philadelphia Semiconductor Index fell 2.5% before the market opened, signaling weakness in the semiconductor sector, these two stocks closed higher. NAVER (1.36%), Samsung Biologics (0.84%), Kakao (0.42%), and Samsung SDI (0.29%) also rose.

The KOSDAQ index closed at 1,031.88, up 0.24% (2.42 points) from the previous day. The KOSDAQ initially declined but ended higher as individual investors increased their net purchases. Individuals bought stocks worth 161.9 billion KRW in the KOSDAQ market, while foreign investors and institutions sold stocks worth 64.8 billion KRW and 70.3 billion KRW, respectively.

Most of the top market capitalization stocks on the KOSDAQ closed lower. Celltrion Healthcare (-3.70%), Celltrion Pharm (-3.49%), Seegene (-0.14%), Pearl Abyss (-2.77%), and Kakao Games (-0.86%) were among the decliners.