Foreigners and Institutions Jointly 'Buy' Driving Domestic Stock Market Uptrend... KOSDAQ Rises Over 3%

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The domestic stock market is showing an upward trend as foreign investors and institutions continue to buy simultaneously. In particular, the KOSDAQ index is expanding its gains with an increase of over 3%.

As of 11:05 a.m. on the 5th, the KOSPI index was recorded at 2,339.70, up 39.36 points (1.71%) compared to the previous trading day. The index started trading at 2,322.11, up 21.77 points (0.95%) from the previous day, and maintained its upward momentum due to buying by foreign investors and institutions. Foreign investors and institutions purchased approximately 95.4 billion KRW and 219.9 billion KRW respectively, while individual investors sold about 315.4 billion KRW net.

Among the top market capitalization stocks, Kakao rose the most, increasing by 5.73%. It was followed by Naver (4.68%), LG Chem (3.60%), SK Hynix (3.48%), Samsung SDI (3.16%), LG Energy Solution (1.26%), Samsung Biologics (1.01%), and Samsung Electronics (0.70%). Meanwhile, Kia fell by 0.13%, and Hyundai Motor remained flat.

By sector, the medical precision sector, which showed strength in the previous trading day, rose 5.71%. This was followed by service industry (3.24%), textiles and apparel (2.96%), non-metallic minerals (2.67%), chemicals (2.43%), steel and metals (2.41%), and pharmaceuticals (2.35%). The food and beverage sector was the only one to decline, falling 0.53%.

The KOSDAQ index, which started the day with gains, is also showing an upward trend due to buying by foreign investors and institutions. At the same time, the KOSDAQ index recorded 748.75, up 26.02 points (3.60%) from the previous trading day. The index began trading at 729.40, up 6.67 points (0.92%). Foreign investors and institutions net bought about 162 billion KRW and 62.7 billion KRW respectively, driving the index higher. Individual investors net sold about 214.7 billion KRW.

Among the top market capitalization stocks, all showed gains. EcoPro BM, a secondary battery-related stock, rose the most by 7.69%, followed by L&F with a 6.67% increase. Other strong performers included Alteogen (6.48%), Kakao Games (5.03%), Chunbo (4.46%), Celltrion Pharm (4.01%), Studio Dragon (3.24%), Pearl Abyss (2.57%), Celltrion Healthcare (1.88%), and HLB (1.25%).

Lee Jae-sun, a researcher at Hyundai Motor Securities, explained, "The U.S. stock market was closed for Independence Day, so there was little material to move the market." He added, "Compared to other countries' stock markets, the domestic market had a relatively large decline, leading to a rebound buying trend and an upward movement." He further noted, "Since concerns about inflation remain, we need to observe a bit longer to see whether this upward trend will continue as a sustained trend."