Net Buying by Individuals and Foreigners... KOSPI Starts Higher

On the 6th, KOSPI opened at 2,927.50, down 26.47 points (0.90%) from the previous trading day. Dealers are working in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. On the same day, the won-dollar exchange rate started trading at 1,200.9 won, up 4.0 won from the previous trading day. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Hwang Junho] On the 7th, the stock market opened higher as a rebound buying spree flowed in following two consecutive days of decline amid the accelerated pace of U.S. monetary tightening.

On that day, the KOSPI started at 2,933.78, up 13.25 points (0.45%), and has been increasing its gains. As of 9:23 a.m., it was recording 2,950.15, up 1.01%. Individual investors are net buying 71.6 billion KRW, foreign investors are net buying 151.5 billion KRW, while only institutions are net selling 222.8 billion KRW.

Among all listed stocks, 591 are rising and 232 are falling. The upward trend is centered on stocks that had recently been declining. Samsung Electronics, the immutable market leader, announced its earnings on the day and is trading at 77,800 KRW, up 1.17%.

Samsung Electronics reported consolidated sales of 76 trillion KRW and operating profit of 13.8 trillion KRW for the fourth quarter of last year (September to December). Sales increased by 2.73% compared to 61.55 trillion KRW in the same period last year. Operating profit also rose 52.49% from 9.05 trillion KRW in the fourth quarter of the previous year. However, it decreased by 12.77% compared to the third quarter (July to September) operating profit of 15.82 trillion KRW. Additionally, the results fell short of market consensus.

SK Hynix, another semiconductor stock, is also up 2.00% at 127,500 KRW. Samsung Biologics (1.19%), NAVER (0.59%), and LG Chem (1.30%) are also showing upward trends.

By sector, the textile and apparel sector stands out with a 2.36% rise. F&F (4.70%), IndieF (1.21%), and Ssangbangwool (1.01%) are leading the sector's overall upward movement.

The KOSDAQ, which had fallen below the 1,000-point mark, started at 986.18, up 5.88 points (0.60%), attempting to recover. Individual investors are net buying 63.4 billion KRW, driving the index upward, but foreign and institutional investors are selling 56 billion KRW and 9.8 billion KRW respectively, so it remains to be seen whether the upward momentum will continue.

Among all stocks, 1,025 are rising and 324 are falling. Among the top market cap stocks, Celltrion Healthcare is up 2.45%, EcoPro BM 1.10%, and Pearl Abyss 1.11%, with most stocks following an upward trend.

By sector, the digital sector rose 2.61%, and the publishing media sector rose 1.88%, showing larger gains compared to other sectors. Within the digital sector, Roborobo (10.70%), Wemade Max (9.66%), Asia Economy (6.67%), and Wemade (5.64%) showed the highest gains.

Han Ji-young, a researcher at Kiwoom Securities, said, "Although it is true that expectations for the overall Q4 earnings season of domestic listed companies, including Samsung Electronics, are not high, if earnings are announced favorably amid the current high macroeconomic uncertainty, the domestic stock market is expected to show a resilient price trend despite external shocks."

On the day, the won/dollar exchange rate showed an upward trend similar to the previous day. It is trading at 1,202.10 KRW, up 0.09% from the previous session.

Heo Jae-hwan, a researcher at Eugene Investment & Securities, analyzed, "There is no material to deny the current dollar strength. With the U.S. Federal Reserve showing its hawkish stance, the dollar will maintain its strength until the financial market fully reflects the possibility of interest rate hikes and asset reduction."