Foreign and Institutional Investors Increase Joint Buying... KOSPI Retouches 3020

On the 21st, the KOSPI opened at 3,012.28, down 0.85 points (0.03%) from the previous trading day, then turned to a slight upward trend after early gains. The won-dollar exchange rate opened at 1,175.5 won, up 1.3 won from the previous trading day. The photo shows the Hana Bank dealing room in Jung-gu, Seoul on the day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Ji Yeon-jin] On the 25th, the KOSPI index recovered to the 3020 level during the session, supported by simultaneous buying by foreigners and institutions following a decline in the won-dollar exchange rate. Meanwhile, the KOSDAQ continues to weaken despite buying by individual investors.

At 1:30 PM, the KOSPI index was at 3019.80, up 13.64 points (0.45%) compared to the previous trading day. The index started lower but rebounded as foreigners switched to buying, rising past noon to reach 3023.

The main drivers of the KOSPI rebound were foreigners and institutions. Foreigners, who were net sellers early in the session, turned to net buyers as the won-dollar exchange rate dropped right after the market opened, expanding their buying. Institutions also joined in buying. Foreigners and institutions are net buyers of 98.5 billion KRW and 156.9 billion KRW respectively, while individuals are net sellers of 248.8 billion KRW.

Among the top market capitalization stocks, SK Hynix showed a strong gain of 3.05%, recovering to 100,000 KRW, and Samsung Electronics, which had fallen to the 60,000 KRW range early in the session, is up 0.14%. Hyundai Motor and Kia Motors both posted gains in the 1% range. Conversely, Kakao (-1.57%) and Celltrion (-1.37%) are down more than 1%, and Naver (-0.98%) and Samsung Biologics (-0.80%) are also weak.

Lee Kyung-min, head of investment strategy at Daishin Securities, said, "Last week, the US Nasdaq showed weakness, causing increased volatility early in the session and testing the KOSPI 3000 support level. However, as the won-dollar exchange rate fell from 1178 to 1174 per dollar and stabilized, the KOSPI rebounded. Early in the session, Hynix’s sharp rebound seems to have changed the sentiment in the semiconductor sector."

At the same time, the KOSDAQ index was trading at 992.31, down 2.76 points (0.28%). Individuals were net buyers of about 131.4 billion KRW, while foreigners and institutions were net sellers of approximately 106.2 billion KRW and 5.4 billion KRW respectively.

Top market cap stocks on the KOSDAQ showed significant volatility during the session. Pearl Abyss, which was weak early on, rebounded 2.43% and hit a new 52-week high again. CJ ENM, which was rising nearly 3%, gave back some gains in the afternoon, up 0.22%. L&F recorded a 3% decline, and Kakao Games fell 2%.

Shin Seung-jin, a researcher at Samsung Securities, said, "Due to the uncertain macro environment and doubts about the sustainability of future earnings permeating the market, theme-driven trading unrelated to macro factors will inevitably continue for the time being. Since plans for phased daily recovery will be announced starting in November, the media and content sectors could benefit."