KOSPI Recovers to 2960 Level... Foreign Selling Also Slows Down

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] The KOSPI, which started higher, is extending its gains during the session. The domestic stock market, which had plunged to levels threatening its yearly low in the previous trading session, rebounded thanks to positive external factors such as the easing of uncertainty over the U.S. debt ceiling and relief from inflationary pressures.

As of 11:10 a.m. on the 7th, the KOSPI is trading at 2,956.43, up 1.65% from the previous trading day. It has recovered to the 2,960 level during the session, showing upward momentum. The KOSDAQ is trading at 946.80, up 2.65%. The KOSPI opened the day at 2,936.87, up 28.56 points (0.98%), while the KOSDAQ started at 932.65, up 10.29 points (1.12%).

In the KOSPI market, individual investors are net sellers, offloading about 371.7 billion KRW. Foreign investors have sold a relatively small amount, about 37.5 billion KRW. Only institutions are net buyers, purchasing approximately 407.1 billion KRW. In the KOSDAQ market, individuals are also net sellers, selling about 185.7 billion KRW. Foreigners and institutions are net buyers with 166.8 billion KRW and 31 billion KRW, respectively.

The strongest sectors in the KOSPI are Services (+3.95%), Machinery (+2.76%), and Construction (+2.70%), while the weakest sectors are Electric & Gas (-0.24%) and Chemicals (-0.08%). In the KOSDAQ, the strongest sectors are Non-metallic Minerals (+4.46%), Digital Content (+4.38%), and Broadcasting Services (+4.29%), with Paper & Wood (-2.17%) being the weakest sector.

Hana Financial Investment commented, "The domestic stock market is on an upward trend due to bargain hunting following the previous day's decline and the possibility of a U.S. debt ceiling extension. With Samsung Electronics’ preliminary earnings announcement starting tomorrow, the earnings season is officially underway, maintaining interest in performance-driven stocks."

Meanwhile, on the 6th (local time), the New York stock market opened lower as rising long-term interest rates led to selling in growth stocks such as tech shares, but buying interest returned as concerns over debt ceiling increase negotiations eased, closing higher. On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 34,416.99, up 102.32 points or 0.30% from the previous day. The Standard & Poor’s (S&P) 500 index ended at 4,363.55, up 17.83 points or 0.41%. The tech-heavy Nasdaq Composite also closed at 14,501.91, up 68.08 points or 0.47% from the previous day.

Investor sentiment improved on news that the opposition Republican Party proposed a temporary suspension of the federal government’s debt ceiling, raising hopes for an agreement. Senate Minority Leader Mitch McConnell proposed extending the debt ceiling until December to avoid default. This plan would allow debt expansion within the range that can cover expenditures until then.