Institutions Continue Net Buying... KOSPI Trades Above 3210

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] The KOSPI is maintaining the 3210 level amid net buying by institutional investors.

As of 10:21 AM on the 2nd, the KOSPI stood at 3213.68, up 0.40% (12.74 points) from the previous trading day. The KOSPI opened at 3218.42, up 0.50% (16.10 points) from the previous day, and has maintained an upward trend. Looking at investor trends, foreigners and individuals sold stocks worth 277.2 billion KRW and 174.5 billion KRW respectively, while institutions alone bought stocks worth 454 billion KRW.

Foreign investors maintained a net selling trend on the first trading day of August as well. Until last month, foreign investors sold about 24 trillion KRW worth of domestic stocks since the beginning of the year, which is comparable to last year's annual net selling volume (25 trillion KRW). Ji-young Han, a researcher at Kiwoom Securities, explained, "The sharp rise in US inflation and the Federal Reserve's tightening cycle have increased uncertainty, which seems to have acted as a burden," adding, "There is a high possibility that they will resume efforts to increase their Korean holdings once macroeconomic uncertainties ease."

By sector, pharmaceuticals (2.15%), electric and gas utilities (1.67%), electrical and electronics (0.82%), and distribution (0.65%) led the gains. Among pharmaceuticals, Ilyeon Pharmaceutical (5%), Shinpung Pharmaceutical (3.4%), Celltrion (2.5%), and Jinwon Life Science (2.5%) showed strong performance. It appears that the positive impact on investor sentiment was due to the fact that, for the first time since statistics on production, export, and import performance of pharmaceuticals and quasi-drugs were compiled last year, a surplus was achieved.

At the same time, among the top market capitalization stocks, Samsung Electronics and SK Hynix rose by 0.89% and 2.22%, respectively. Others such as NAVER (0.23%), Kakao (0.68%), Samsung Biologics (1.57%), and Hyundai Motor (0.46%) also showed upward trends. On the other hand, secondary battery-related stocks LG Chem (-0.71%) and Samsung SDI (-0.13%) declined.

The KOSDAQ index stood at 1036.32, up 0.51% (5.17 points) from the previous trading day. The KOSDAQ opened at 1033.17, up 0.20% (2.03 points) from the previous day. Looking at investor trends, institutions and foreigners bought stocks worth 10.1 billion KRW and 35.1 billion KRW respectively, while individuals sold stocks worth 38.6 billion KRW alone.

By sector, distribution (1.94%), medical and precision instruments (1.61%), transportation equipment and parts (1.32%), pharmaceuticals (1.10%), and semiconductors (0.68%) showed upward trends. Interpark, which is driving the rise in the distribution sector, showed a rise of over 6%.

Among the top market capitalization stocks, Celltrion Healthcare (2.70%), Celltrion Pharm (2.16%), Pearl Abyss (1.62%), HL Biopharma (2.91%), Seegene (3.71%), and Alteogen (3.25%) rose, while Kakao Games (-0.11%), EcoPro BM (-1.62%), SK Materials (-0.90%), and CJ ENM (-0.37%) declined.