KOSPI and KOSDAQ Extend Gains... Foreign Investors Join Institutions in Net Buying

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] The KOSPI and KOSDAQ indices are expanding their gains, supported by net purchases from institutions and foreigners.

As of 1:32 PM on the 26th, the KOSPI is up 0.81% at 3044.99, and the KOSDAQ is up 1.57% at 1009.90. With strong net buying from institutions and foreigners switching to a buying advantage, the indices are rising.

Institutions have a net buying advantage of approximately KRW 202.6 billion and KRW 61.1 billion in the KOSPI and KOSDAQ markets, respectively. Foreigners are also recording net purchases of KRW 35.7 billion and KRW 97.5 billion. Only individuals are on the selling side with net sales of about KRW 239.4 billion and KRW 150.4 billion.

The strong sectors in KOSPI are Pharmaceuticals (+2.00%), Services (+1.52%), and Electrical & Electronics (+1.35%), while the weak sectors are Telecommunications (-0.26%), Non-metallic Minerals (-0.19%), and Food & Beverages (-0.17%). The strong sectors in KOSDAQ are Digital Contents (+4.26%), Construction (+3.17%), and Entertainment & Culture (+3.10%), with the weak sector being Transportation Equipment & Parts (-0.55%).

Han Ji-young, a researcher at Kiwoom Securities, explained, "In a situation where the inflation problem is lasting longer than expected, corporate earnings momentum is offsetting the inflation shock."

Meanwhile, on the 25th (local time) in the New York stock market, the three major indices?the Dow Jones Industrial Average (0.18%), the Standard & Poor's (S&P) 500 Index (0.47%), and the Nasdaq Index (0.90%)?all rose together, supported by Tesla's strength. The Dow and S&P 500 closed at record highs. When rental car company Hertz announced it would purchase 100,000 Tesla vehicles, Tesla (12.66%) surpassed a market capitalization of 1 trillion dollars, improving investor sentiment.