Foreigners and Institutions Both Net Buyers... KOSPI Closes Up Over 1% for the First Time in Two Months

Institutional Investors Net Buy 8,000 Units in Two Months
KOSDAQ Also Closes Slightly Higher

On the afternoon of the 22nd, the closing prices of the KOSPI and the KRW/USD exchange rate for the day are displayed in the Hana Bank dealing room in Jung-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The KOSPI closed with a gain of over 1% for the first time in two months. It is evaluated that the simultaneous buying by foreigners and institutions drove the index higher.

On the 22nd, the KOSPI closed at 3,250.21, up 1.07% (34.30 points) from the previous day. After opening slightly higher at 3,235.39, it widened its gains and settled in the 3,250 range. This is the first time the KOSPI has closed with a gain of more than 1% since May 18.

Both foreigners and institutions led the buying. They net purchased 60.9 billion KRW and 817 billion KRW worth of shares, respectively. In particular, institutional investors net bought more than 800 billion KRW for the first time since May 25. Individuals sold off 894.8 billion KRW worth of shares.

Most sectors rose. Steel & Metals (3.26%), Insurance (2.23%), Financials (1.72%), and Electrical & Electronics (1.53%) showed the largest gains. Medical Precision (-3.39%), Machinery (-0.68%), and Pharmaceuticals (-0.64%) declined.

Almost all of the top 10 market capitalization stocks rose. NAVER had the largest gain at 2.80%. It was followed by SK Hynix (2.14%), LG Chem (1.98%), Kakao (1.72%), Samsung Electronics (1.53%), Celltrion (0.75%), Samsung SDI (0.68%), Kia (0.34%), and Hyundai Motor (0.22%). Only Samsung Biologics fell by -1.89%.

The KOSDAQ also closed up 0.79% (8.22 points) at 1,050.25. After opening slightly higher at 1,046.51, it added modest gains before closing.

The KOSDAQ index was driven by strong buying from foreigners, who purchased 258.3 billion KRW worth of shares. This is the largest amount since 270.3 billion KRW on the 18th of last month. Individuals and institutions net sold 233.7 billion KRW and 3.2 billion KRW, respectively.

Many sectors rose. The Digital Contents sector had the largest gain at 4.18%, followed by Semiconductors (3.12%), Transportation (2.87%), and Textiles & Apparel (2.73%). Paper & Wood (-1.34%) and Food & Tobacco (-0.84%) declined.

The top 10 market capitalization stocks showed mixed results. Kakao Games (13.35%), SK Materials (3.58%), Pearl Abyss (1.79%), Celltrion Healthcare (0.61%), and CJ ENM (0.52%) rose. Meanwhile, Seegene (-3.18%), Alteogen (-2.23%), HLB (-1.88%), EcoPro BM (-1.37%), and Celltrion Pharm (-0.47%) fell.