KOSDAQ Foreigners End with Net Buying... Top 5% by Market Cap Rise

KOSPI and KOSDAQ Close Higher
Top Market Cap Stocks in KOSDAQ
Significant Rise Due to Foreign Net Buying

[Asia Economy Reporter Junho Hwang] On the 25th, the KOSPI closed higher after an early mixed session. In the case of KOSDAQ, foreign investors' net buying led to a significant surge in the market capitalization top stocks.

On that day, the KOSPI ended the session at 2,617.22, up 11.35 points (0.44%). While individuals and foreigners realized gains worth 359.4 billion KRW and 165.2 billion KRW respectively, foreign investors engaged in net buying worth 512.8 billion KRW, resulting in a slight rise in the market.

Among all stocks, 485 stocks rose. Among the top market capitalization stocks, Samsung Biologics (2.85%) showed a notable upward trend. The increase in operating rates since the second quarter of this year has raised expectations for earnings, which is analyzed as the reason for the significant rise.

Samsung Biologics, Growing Earnings Expectations

Besides Samsung Biologics, Celltrion (5.52%) and JW Pharmaceutical (2.44%) also rose sharply, making the pharmaceutical sector (2.53%) the second highest performing sector overall.

Samsung Electronics, the unwavering market leader, could not overcome the strong selling pressure from foreign investors despite net buying by individuals and institutions. The stock price of Samsung Electronics, which showed an intraday rise, closed at 66,400 KRW, down 0.15% from the previous session. SK Hynix, also in the electrical and electronics sector along with Samsung Electronics, fell 0.46% from the previous close. LG Energy Solution also closed at 426,500 KRW, down 2.74% from the previous session.

The non-metallic minerals sector showed the highest rise among KOSPI sectors that day. Posco Chemical (4.30%), Hanil Cement (3.57%), and IS Dongseo (1.88%) contributed significantly to the sector's upward momentum.

KCS and Samsung Publishing reached the daily upper limit price. In the case of Samsung Publishing, the news that The Pinkfong Company (formerly SmartStudy), the content company that produced "Baby Shark," is moving forward with its initial public offering (IPO) is analyzed to have influenced the stock price.

Kim Seok-hwan, a researcher at Mirae Asset Securities Media Content Division, said, "In the market that day, the euro's strength due to expectations of an ECB rate hike in July, the dollar index's decline due to weak major US economic indicators, and the won's appreciation all worked favorably for foreign investor inflows." He added, "The Greater China markets also rose as expectations grew for the imminent lifting of COVID-19 lockdowns."

Top Market Cap Stocks Rise Over 5% on Foreign Net Buying

Jang Hyun-guk, CEO of Wemade

The KOSDAQ also closed higher at 872.69, up 7.62 points (0.88%). While individuals engaged in net buying worth 102.6 billion KRW, institutions and foreign investors also maintained the index's upward momentum with net buying of 51.5 billion KRW and 50.6 billion KRW respectively.

Following foreign inflows into KOSDAQ, the top market capitalization stocks all rose. Pearl Abyss (5.33%), Kakao Games (5.03%), HLB (4.96%), Celltrion Healthcare (4.34%), and Celltrion Pharm (3.51%) all surged significantly.

Wemade soared 11.89% that day. Its subsidiary Wemade Max also hit the daily upper limit price. The rise was driven by growing expectations for virtual currency, as Wemade CEO Jang Hyun-guk emphasized the stability of WEMIX during a media briefing in the first quarter and stated that it would become the "key currency of the gaming industry."

Lee Kyung-min, a researcher at Daishin Securities, explained, "Despite the US stock market's weakness due to recession concerns, the market rose as related issues had been priced in until the previous day. With changing market expectations regarding the Federal Reserve's benchmark rate adjustments by the end of this year, attention should be paid to the minutes of the May Federal Open Market Committee (FOMC) scheduled for 3 a.m. on the 26th (Korean time)."

The USD/KRW exchange rate closed at 1,264.60 KRW, down 0.13% from the previous day.