Foreigners and Institutions Jointly 'Net Buyers'... Closed at 3249.32

[Asia Economy Reporter Minji Lee] The KOSPI closed higher due to net buying by foreigners and institutions.

On the 11th, the KOSPI ended the session at 3,249.32, up 0.77% (24.68 points) from the previous trading day. The index started the day at 3,226.98, up 0.07% (2.34 points) from the previous day, and continued its upward trend. Although the US Consumer Price Index (CPI) showed the largest increase in 13 years, the US stock market digested it positively, which is interpreted as having a positive impact on the domestic stock market. Looking at investor trends, foreigners and institutions bought stocks worth 176.5 billion KRW and 273.1 billion KRW respectively, while individuals sold stocks worth 477.9 billion KRW.

By sector, steel & metals (3.5%), chemicals (1.79%), transportation & warehousing (1.59%), and telecommunications (1.04%) showed the largest gains. Steel stocks such as Hyundai Steel are analyzed to have reflected performance expectations due to rising steel prices. Semiconductor and pharmaceutical sectors, which led the rise in the US stock market the previous day, rose by 1.03% and 0.11% respectively.

Most of the top market capitalization stocks rose. Samsung Electronics closed at 81,000 KRW, the same as the previous trading day. SK Hynix (4.07%), Kakao (1.50%), LG Chem (5.33%), Hyundai Motor (1.06%), and Samsung SDI (4.59%) rose. On the other hand, NAVER (-0.27%) and Samsung Biologics (-1.17%) declined. Among the top stocks, companies related to secondary batteries showed strength. Samsung SDI benefited from the possibility of entering the US production base and the officialization of a battery supply contract with US electric truck company Lordstown.

On the same day, the KOSDAQ index closed at 990.97, up 0.32% (3.20 points) from the previous trading day. The index started at 989.39, up 0.16% (1.62 points) from the previous day, and closed higher. In the KOSDAQ market, individuals alone bought stocks worth 155.8 billion KRW. Foreigners and institutions sold stocks worth 106.7 billion KRW and 47.8 billion KRW respectively.

By sector, entertainment & culture (1.90%), paper & wood (1.14%), distribution (0.87%), telecommunication services (0.81%), and general electric & electronics (0.79%) rose. All top market capitalization stocks closed higher. Celltrion Healthcare and Celltrion Pharm rose by 0.43% and 0.80% respectively. Kakao Games (0.35%), EcoPro BM (2.49%), Pearl Abyss (0.65%), CJ ENM (0.84%), and SK Materials (1.06%) also rose.

Lee Kyung-min, a researcher at Daishin Securities, explained, “The market’s perception that the inflation rise will be temporary has spread, and the experience of last April played a significant role, greatly weakening the CPI surprise effect this time. Due to the strong US stock market, technology and growth stocks such as secondary batteries and semiconductors showed strength.”