KOSPI Maintains Uptrend... Institutional Investors Net Buyers

[Image source=Yonhap News]

[Asia Economy Reporter Junho Hwang] On the 9th, the KOSPI maintained its upward trend despite it being the "Four Witching Days" (simultaneous expiration of futures and options). However, amid increased volatility in foreign investors' supply and demand, the index is barely holding the 3000 level thanks to continued net buying by institutions.

As of 1:41 PM, the KOSPI is at 3016.84, up 0.50% from the previous close. Institutions have net purchased 236.8 billion KRW, while individuals and foreigners have realized gains by net selling 216.4 billion KRW and 41.2 billion KRW respectively. Among all listed stocks, 599 are rising and 243 are falling.

Looking at the top market capitalization stocks, the perennial leader Samsung Electronics is showing a flat trend with difficulty. At this time, Samsung Electronics is trading at 77,400 KRW, unchanged from the previous day's closing price. SK Hynix, in the same semiconductor sector, is trading up 2.50% at 123,000 KRW. Other notable performers include Samsung SDI (0.56%), Hyundai Motor (0.24%), and Kia (0.96%).

By sector, in the KOSPI, the textile and apparel sector stands out with a 1.37% rise. Transportation and warehousing (1.18%), machinery (0.94%), telecommunications (0.83%), and services (0.73%) are also on the rise.

The KOSDAQ is at 1018.61, up 1.25% from the previous session. Foreigners and institutions are supporting the market with net purchases of 33.4 billion KRW and 81.5 billion KRW respectively. Among the top market cap stocks, gaming stocks showed remarkable performance. Pearl Abyss is trading up 6.77% at 130,900 KRW, and Wemade is up 5.53% at 179,500 KRW.

Meanwhile, today is one of the "Four Witching Days" that occur every three months in March, June, September, and December. It is the day when the expiration dates of four types of derivatives?futures and options on indices and individual stocks?coincide, often causing extreme volatility in the stock market.

Researcher Jaehwan Heo of Eugene Investment & Securities commented, "With the foreign investors' sell-off in the cash market calming down, their recent switch to buying since November-December is positive for the domestic stock market. Although futures tend to be reduced for hedging when bought together with spot purchases, even if selling pressure emerges, it is unlikely to be severe."