KOSPI Recovers to 3220 Level on Institutional Net Buying

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] The KOSPI closed higher, supported by net buying from institutional investors. As the Chinese stock market, which had plunged due to strong export-import indicators and regulatory issues, showed an upward trend, investment sentiment toward risk assets appears to have expanded.

On the 2nd, the KOSPI closed at 3,223.04, up 0.65% (20.72 points) from the previous trading day. The index opened at 3,218.42, up 0.5% (16.10 points) from the previous day, and although it briefly turned downward, it showed an upward trend supported by the rise in Chinese indices and net futures buying by foreigners.

Institutions led the market on this day. Looking at investor trends, foreigners and individuals sold stocks worth 148.3 billion KRW and 487.9 billion KRW respectively, while institutions alone net bought stocks worth 625.3 billion KRW. Lee Kyung-min, a researcher at Daishin Securities, said, “The Greater China stock market, which experienced increased volatility due to regulatory issues on Chinese companies, turned upward in the morning, positively affecting investor sentiment. Although the won-dollar exchange rate rose to the 1,154 won level during the session, it later declined due to easing dollar strength pressure and recovery in risk appetite.”

By sector, the rise rates were pharmaceuticals (3.58%), electric and gas utilities (1.71%), electrical and electronics (1.08%), manufacturing (1.01%), and transportation equipment (0.90%). Among large-cap stocks, Samsung Electronics and SK Hynix rose 1.01% and 3.11%, respectively. LG Chem (2.61%), Samsung Biologics (2.58%), Samsung SDI (0.81%), Hyundai Motor (0.92%), and Celltrion (3.94%) also showed upward trends.

Seo Sang-young, a researcher at Mirae Asset Securities, said, “The pharmaceutical sector showed strength due to strong second-quarter earnings. Semiconductor representative stocks such as Samsung Electronics and SK Hynix rose following favorable export-import indicators, while the steel and metal sector, which had risen on expectations of regulatory benefits from China, showed weakness due to profit-taking selling.”

At the same time, the KOSDAQ index closed at 1,037.80, up 0.65% (6.66 points) from the previous trading day. Looking at investor trends, foreigners and institutions bought stocks worth 81.8 billion KRW and 18.6 billion KRW respectively, while individuals sold stocks worth 88.4 billion KRW alone.

By sector, distribution (3.36%), pharmaceuticals (1.94%), internet (1.90%), and medical and precision instruments (1.57%) showed upward trends. Among distribution companies, Interpark surged 13.7% on expectations of a successful acquisition bid. Among large-cap stocks, Celltrion Healthcare (4.93%), Celltrion Pharm (4.82%), HL Biopharma (1.94%), Seegene (2.71%), CJ ENM (0.61%), and Alteogen (2.25%) rose, while Kakao Games (-3.03%) and EcoPro BM (-1.04%) declined.