KOSPI Rises on Net Buying by Foreigners and Institutions... "Impact of US-China Conflict Concerns is Limited"

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] On the 27th, the KOSPI showed an early morning upward trend, supported by net purchases from foreigners and institutions.

As of 9:14 AM, the KOSPI was trading at 3,248.95, up 0.74% (24.00 points) compared to the previous trading day. The index started at 3,244.43, up 19.48 points (0.60%) from the previous day, gradually expanding its gains.

Overnight, the New York stock market closed at record highs on expectations of strong earnings from major IT companies. On the 26th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 35,144.31, up 82.76 points (0.24%) from the previous session. The Standard & Poor's (S&P) 500 index also rose 10.51 points (0.24%) to 4,422.30, and the Nasdaq index closed at 14,840.71, up 3.72 points (0.03%). Although the market showed a decline early in the session due to deteriorating investor sentiment following a drop in the Chinese stock market, all three major indices closed at record highs on positive earnings outlooks from U.S. companies.

Seosangyoung, a researcher at Mirae Asset Securities, noted, "It is important to pay attention to the cautious stance of the U.S. stock market ahead of major corporate earnings announcements." He added, "Since concerns over U.S.-China conflicts, one of the causes of the sharp decline in the Chinese stock market, did not have a significant impact, a rebound from the previous day's decline in the Korean stock market is expected."

The index rise today was largely influenced by foreign and institutional investors. Foreigners and individuals led the index with net purchases of 57.5 billion KRW and 14.5 billion KRW, respectively. Conversely, individuals sold a net 72.7 billion KRW.

Among the top 10 stocks by market capitalization, all showed gains. NAVER recorded the largest increase, rising 1.88% to 460,500 KRW. SK Hynix (1.71%), Samsung Electronics (0.38%), Samsung Biologics (0.56%), LG Chem (1.35%), and Samsung SDI (0.95%) also rose.

The KOSDAQ also showed an upward trend. At the same time, the KOSDAQ was trading at 1,049.12, up 1.49 points (0.14%) from the previous day. The index started at 1,050.87, up 3.24 points (0.31%) from the previous day.

Unlike the KOSPI, individual buying led to the index rise. Individuals bought 69 billion KRW. Foreigners and institutions sold net amounts of 49.8 billion KRW and 17.4 billion KRW, respectively.

Among the top 10 stocks by market capitalization, there were mixed movements. Celltrion Healthcare (1.40%), Celltrion Pharm (2.54%), and Kakao Games (2.00%) rose. Meanwhile, EcoPro BM (-1.79%), SK Materials (-1.10%), and CJ ENM (-0.63%) declined.