Institution Picks 'KOSPI'... KOSDAQ Led by Foreigners Hits Another All-Time High

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] On the 5th, the KOSDAQ index hit a new record high again, supported by foreign buying. With moderate expectations for economic improvement, funds flowing into the stock market this year seem to be concentrating on relatively undervalued KOSDAQ stocks. The KOSPI market also aimed to reclaim the 3300 level with net purchases by institutions.

The KOSDAQ index, which started the day with a slight rise, recorded 1046.99 points at 1:53 PM, up 8.81 points (0.85%) from the previous trading day. During the session, the index soared to 1047.37, continuously setting new historical highs. While individuals sold about 174.5 billion KRW worth, foreigners and institutions net bought 132.6 billion KRW and 59.6 billion KRW respectively.

At the same time, the KOSPI index stood at 3295.97 points, up 14.19 points (0.43%) from the previous close. Although individuals and foreigners net sold about 250.8 billion KRW and 46.2 billion KRW respectively, institutions led the index's rise by purchasing about 203.5 billion KRW worth.

In the KOSPI market, large-cap stocks (0.52%) showed strength, with the transportation and warehousing sector (3.16%) recording the largest gains. In particular, HMM rose more than 5% on expectations that the container shipping industry boom will continue long-term. Hanjin KAL also recorded gains exceeding 4%.

Among the top market capitalization stocks, Celltrion rose the most by 2.61%, and Samsung Biologics (1.87%) successfully rebounded in the afternoon. Samsung Electronics (0.62%) slightly gave up some of its gains in the afternoon. Meanwhile, SK Hynix (1.63%) and LG Chem (2.36%) saw their gains widen. Kakao (-0.63%) and Naver (NAVER, -1.21%) both declined.

Among the top KOSDAQ market cap stocks, Kakao Games (5.73%) surged more than 16% intraday after its new game topped app market sales but narrowed gains in the afternoon. Pharmaceutical and bio stocks including Celltrion Healthcare (2.00%) and Celltrion Pharm (3.56%) showed strength. However, Seegene (-1.55%) and Pearl Abyss (-1.08%) were weak.

Lee Jin-woo, a researcher at Meritz Securities, said, "Although there are mixed interpretations of the U.S. labor market, the interest rate reactions confirm that there are no abnormal signs of economic improvement, and risk appetite continues. Looking at recent market stock characteristics, the dichotomy between cyclical and growth stocks is diversifying into earnings-centered stocks, so the market is gradually moving based on earnings rather than macro issues."