Foreigners Return... KOSPI Ends Slightly Higher Amid Large-Scale Institutional Selling

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[Asia Economy Reporter Myung-Hwan Lee] On the 18th, the KOSPI closed slightly higher due to net buying by foreigners and individuals. However, the index's rise was limited as institutions sold more than 300 billion KRW in the KOSPI market. Domestic semiconductor stocks showed an upward trend influenced by the sharp rise in the Philadelphia Semiconductor Index in the U.S. the previous day.

On the day, the KOSPI closed at 2,625.98, up 0.21% (5.54 points) from the previous trading day. The KOSPI opened at 2,634.75, up 0.55% (14.31 points) from the previous day, and rose nearly 1%, but the upward momentum sharply slowed, fluctuating around a flat trend. By investor type, individuals and foreigners bought 26.1 billion KRW and 290.5 billion KRW worth of stocks respectively, while institutions alone sold 342.6 billion KRW net.

Among the top market capitalization stocks in the KOSPI market, semiconductor-related stocks closed higher. Samsung Electronics rose 0.74% (500 KRW) to close at 68,100 KRW, returning to the 68,000 KRW level. Samsung Electronics Preferred (1.17%) and SK Hynix (0.89%) also rose. Others such as ▲LG Energy Solution (0.37%) ▲Samsung Biologics (3.52%) ▲Naver (NAVER) (0.36%) ▲Samsung SDI (2.03%) ▲LG Chem (1.39%) also increased. Kakao fell 0.72% from the previous day. Hyundai Motor ended trading at the same price as the previous day, 185,500 KRW.

Regarding the rise in semiconductor stocks, Kim Seok-Hwan, a researcher at Mirae Asset Securities, explained, "The semiconductor sector showed strength following the previous day. The sharp rise in the U.S. Philadelphia Semiconductor Index positively influenced domestic semiconductor stocks."

By sector, textiles and apparel (3.97%), pharmaceuticals (1.69%), and electrical and electronics (0.77%) rose, while machinery (-2.31%), construction (-1.74%), and telecommunications (-1.64%) declined.

The KOSDAQ index closed at 871.57, up 0.65% (5.59 points) from the previous trading day. On the day, the KOSDAQ opened at 872.19, up 0.72% (6.21 points) from the previous day, then declined somewhat before rising again in the latter part of the session. By investor type, individuals alone bought 93.6 billion KRW, while foreigners and institutions sold 7.5 billion KRW and 83.6 billion KRW net, respectively.

Among the top market capitalization stocks in KOSDAQ, HLB recorded the highest increase, closing at 52,300 KRW, up 14.44% (6,600 KRW) from the previous day. ▲EcoPro BM (1.36%) ▲L&F (4.03%) ▲Celltrion Healthcare (1.81%) ▲Kakao Games (0.35%) also closed higher. Pearl Abyss (-2.19%), Celltrion Pharm (-0.77%), and Rino Industries (-0.82%) declined.

By sector, transportation equipment and parts (6.04%), transportation (4%), and other manufacturing (3.19%) rose, while construction (-1.64%), non-metallic minerals (-0.96%), and medical and precision instruments (-0.89%) fell.

Researcher Kim noted on the 18th regarding the domestic stock market, "The upcoming European Central Bank (ECB) monetary policy meeting led to a cautious stance and profit-taking, which narrowed the gains."