KOSPI Closes at 3201.06... Foreign Investors Return

On the 26th, the KOSPI opened at 3,151.30, up 4.49 points (0.14%) from the previous trading day, at the Hana Bank dealing room in Jung-gu, Seoul. On the same day, the won-dollar exchange rate opened at 1,165.0 won, down 3.1 won from the previous trading day. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Hwang Junho] On the 3rd, the KOSPI surpassed the 3200 mark again as foreign and institutional investors continued net buying.

On that day, the KOSPI closed at 3201.06, up 25.21 points (0.79%) from the previous trading day. Net buying by foreigners and institutions drove the index higher. Foreigners net bought 370.3 billion KRW, and institutions net bought 102.4 billion KRW. Foreigners have been net buyers for four consecutive trading days including this day. Among all stocks, 524 rose while 311 fell.

Among all sectors, those with significant net buying by foreigners included Pharmaceuticals (1.29%), Services (1.19%), Electrical & Electronics (1.115%), Machinery (1.12%), Transportation Equipment (1.12%), and Steel & Metals (0.92%), showing notable upward trends.

Within the Pharmaceuticals sector, Ilyeon Pharmaceutical rose 12.01% following news that the completion of its chemical plant in Chungju, which involved an investment of 210 billion KRW, was expedited. SK Bioscience, which received overlapping positive news such as the Phase 3 clinical trial of its COVID-19 vaccine candidate and inclusion in the K-New Deal Index, also rose 9.12%.

Among the top market capitalization stocks, Samsung Electronics, the KOSPI leader, rose 0.79%, slightly recovering from the previous day's 1.04% decline. NAVER rose 2.26% amid allegations that its founder and Global Investment Officer Lee Hae-jin gained hundreds of billions of KRW in stock valuation profits through insider information. LG Electronics recorded a 10.04% increase to 153,500 KRW following reports that Apple met with Korean companies for mass production of the Apple Car. Other stocks showing gains included SK Hynix (0.47%), Kakao (0.97%), and Samsung Biologics (0.32%).

Lee Kyung-min, a researcher at Daishin Securities, said, "The simultaneous net buying of spot stocks by foreigners and institutions is the first in seven trading days since the 25th of last month," adding, "Rather than any special momentum, this inflow seems to be driven by the perception that bad news will soon turn into good news ahead of the U.S. employment data release tonight."

The KOSDAQ also closed higher at 1053.87, up 6.68 points (0.64%). The KOSDAQ rose as foreigners net bought 108.2 billion KRW. Meanwhile, individuals and institutions net sold 66.9 billion KRW and 27.4 billion KRW, respectively. Among all stocks, 807 rose while 496 fell.

Among the top market capitalization stocks, EcoPro BM stood out with a 5.96% rise, and Rino Industrial rose 3.32%.

Park Kwang-nam, a researcher at Mirae Asset Securities, analyzed, "Net buying by foreigners expanded not only domestically but also in China and emerging markets," adding, "This reflects a recovery in risk asset preference along with the synchronized strengthening of the yuan."