Net Buying Extends to Institutions... KOSPI Continues to Rise

[Asia Economy Reporter Junho Hwang] On the 27th, the stock market started with declines in both the KOSPI and KOSDAQ but turned to gains during the session. The KOSPI continues its upward trend as foreign investors' net buying is followed by institutional investors joining in net purchases.

As of 11:08 AM, the KOSPI is up 20.36 points (0.65%) at 3145.60. Foreign and institutional investors are net buying 153.8 billion KRW and 157.9 billion KRW respectively, sustaining the upward momentum. Individual investors are net selling about 297.1 billion KRW.

Among all listed stocks, 563 stocks rose while 289 declined. Among the top 10 stocks by market capitalization, 8 are showing gains. Samsung Electronics, the KOSPI leader, is up 0.39% at 77,600 KRW. SK Hynix rose 0.96% to 105,000 KRW. Kakao, which has been under government regulatory pressure ahead of the national audit, rebounded with a 1.67% increase to 121,500 KRW. Secondary battery leaders LG Chem and Samsung SDI rose 0.26% and 1.93%, respectively.

By sector, telecommunications (3.30%) is outperforming non-metallic minerals (3.10%), which showed early strength. SK Telecom rose 4.86% to 323,500 KRW, and LG Uplus also gained 2.03%. Other sectors showing gains include transportation and warehousing (1.34%), electric and gas utilities (1.32%), and machinery (1.26%).

Following the KOSPI, the KOSDAQ also turned positive. At the same time, it is up 1.38 points (0.13%) at 1038.41. Foreign and institutional investors are net selling 34.9 billion KRW and 71.8 billion KRW respectively, while individual investors are net buying 109.4 billion KRW.

Among all KOSDAQ stocks, 783 are rising. Among the top market cap stocks, EcoPro BM is up 0.04% at 470,800 KRW, and Kakao Games is trading 0.73% higher at 68,800 KRW.

By industry, the paper and wood sector rose 2.84%, led by Igeon Holdings, the remaining holding company after the spin-off of the window business to Igeon Window, which surged 22.51%. Other sectors showing gains include entertainment (2.36%), other manufacturing (2.16%), and telecommunications equipment (1.74%).

Shinhan Investment Corp.'s investment strategy team analyzed, "The KOSPI started lower but turned higher with foreign investors' net buying for eight consecutive trading days. The KOSDAQ index narrowed its losses during the session, linked to the KOSPI's movement, despite net selling by institutions and foreigners."

Meanwhile, the KRW/USD exchange rate traded down 0.10% at 1175.10 amid unresolved risks from China's Evergrande Group and uncertainty in U.S. fiscal policy, while the stock market rebounded.