KOSPI Rebounds Successfully, Closes Above 2970... "Thanks to Foreign and Institutional Buyers"

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] On the 6th, the KOSPI closed higher at the 2970 level, supported by simultaneous buying by foreigners and institutions. Despite the volatile market caused by the Omicron variant, it recorded a four-day consecutive rise.

On that day, the KOSPI closed at 2,973.25, up 4.92 points (0.17%) from the previous trading day. The index opened at 2,954.82, down 13.51 points (0.46%), and widened its losses to 2,932.49. However, it gradually reduced its losses during the session and eventually succeeded in reversing to an upward trend around 11 a.m.

The rebound was thanks to net buying by foreigners and institutions. They both switched to net buying, showing a buying advantage of 61 billion KRW and 98.2 billion KRW, respectively. Meanwhile, individuals sold a net 170.4 billion KRW.

Among the top 10 stocks by market capitalization, the performance was mixed. Samsung Electronics (0.93%), SK Hynix (0.42%), Samsung Biologics (0.11%), Samsung SDI (0.87%), Hyundai Motor (0.24%), and Kia (1.70%) rose. On the other hand, Naver (-2.49%) and Kakao (-2.02%) declined.

The KOSDAQ closed at 991.87 points, down 6.60 points (0.66%) from the previous day. The index started the day at 990.07, down 8.40 points (0.84%).

By investor type, individuals were net buyers of 377 billion KRW. Foreigners and institutions were net sellers of 258.7 billion KRW and 121.4 billion KRW, respectively.

Among the top 10 stocks by market capitalization, Alteogen (9.77%) was the only stock to rise. Wemade (-10.23%), EcoPro BM (-4.53%), L&F (-3.98%), Kakao Games (-5.25%), HLB (-3.57%), Celltrion Healthcare (-2.53%), Celltrion Pharm (-2.04%), and Pearl Abyss (-2.46%) declined.

Kim Seokhwan, a researcher at Mirae Asset Securities, analyzed, "The KOSPI, which showed a weak trend in the morning session, succeeded in rebounding due to buying by institutions and foreigners. In particular, the steady trend in the leading sector of electrical and electronics also drove the index higher." He added, "In the case of the KOSDAQ, it showed a weak trend as it followed the decline in growth stocks in the U.S. stock market and profit-taking selling mainly in the digital sector."