KOSPI Hits Record Intraday High... Robust Domestic Stock Market

On the 23rd, buoyed by the positive momentum in the US stock market, the KOSPI index showed an early rise. Dealers are working in the Hana Bank dealing room in Euljiro, Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Lee Seon-ae] On the 24th, the domestic stock market started with a slight gain, with the KOSPI breaking its intraday all-time high for the first time in 8 days.

On this day, the KOSPI opened at 3,281.47, up 5.28 points (0.16%), and extended its gains slightly to reach 3,284.93, surpassing the previous intraday all-time high of 3,281.96 recorded on the 16th, marking a new record after 8 days. The KOSDAQ opened at 1,017.11, up 0.65 points (0.06%).

As of 9:13 AM, the KOSPI's gain slightly decreased to 3,279.20, while the KOSDAQ stood at 1,013.74.

Only individual investors are net buyers in both markets. Individuals have a net buying advantage of 120.2 billion KRW in the KOSPI market and 149.8 billion KRW in the KOSDAQ market. Conversely, foreigners and institutions are net sellers in both markets. Foreigners are net selling 90.8 billion KRW and 122.8 billion KRW respectively. Institutions are also net sellers with 25.3 billion KRW and 24.0 billion KRW respectively.

By sector in the KOSPI, textiles and apparel (+0.64%), services (+0.50%), and machinery (+0.35%) are showing strength, while telecommunications (-0.28%), transportation and warehousing (-0.09%), and finance (-0.06%) are declining.

By sector in the KOSDAQ, publishing and media reproduction (+0.24%), pharmaceuticals (+0.17%), and IT components (+0.17%) are strong, while finance (-0.10%), textiles and apparel (-0.09%), and construction (-0.05%) are down.

Han Ji-young and Kim Se-heon, researchers at Kiwoom Securities, stated, "The Korean stock market is expected to show a slight upward trend as it digests hawkish remarks from some Federal Reserve officials amid expectations of strong exports driven by favorable manufacturing conditions in advanced countries." They added, "The better-than-expected manufacturing PMI in the US and Europe in June, which was anticipated to peak out, reconfirms that the economic momentum in advanced countries has not weakened, and this is expected to extend the improvement in Korea's export performance."

They continued, "Although macroeconomic uncertainties remain, there is a high possibility of profit-taking from some mega-cap growth stocks like Kakao and Naver that have recently experienced short-term sharp rises. However, considering the ongoing sector rotation market, the downside of the index is expected to remain firm."