KOSPI 'Strengthens' on Foreign Buyers' Shift... KOSDAQ Retreats to 799

Another Brief Buying Spurt in Personal KOSPI Bull Market
Non-metal Sector Including Kosco Chemical Rises 7%

On the 28th, the KOSPI index opened at 2,437.57, up 0.91% (22.04 points) from the previous trading day, as dealers were working in the Hana Bank dealing room in Euljiro, Seoul. The won-dollar exchange rate started at 1,306 won, down 7.3 won. Photo by Moon Honam munonam@

[Asia Economy Reporter Ji Yeon-jin] On the 28th, immediately after the U.S. Federal Open Market Committee (FOMC) implemented its second 'Giant Step' (a 75 basis point interest rate hike), the domestic stock market rose, supported by foreign buying. However, the phenomenon of concentrated selling by individual investors whenever the market rises this month was repeated on this day as well, limiting the gains.

The KOSPI index recorded 2,432.41 at 10:20 a.m., up 16.88 points (0.70%) from the previous day. Institutions are net buying about 112.3 billion KRW, and foreigners, who were net sellers in the early session, switched to net buyers during the session, purchasing about 71.2 billion KRW worth. On the other hand, individuals are net selling about 167.1 billion KRW.

The U.S. stock market closed higher the previous day as the Fed's 'Giant Step' was already priced in, and Federal Reserve Chairman Jerome Powell's remarks about possible limited future rate hikes boosted gains. The Dow Jones Industrial Average closed at 32,197.59, up 436.05 points (1.37%), the S&P 500 rose 2.62%, and the tech-heavy Nasdaq surged 4.06%.

Additionally, big tech companies that reported weaker-than-expected earnings showed strength on expectations of increased cloud-related spending, leading to concentrated buying of large-cap stocks in the domestic market. Kiwoom Securities analyst Han Ji-young said, "The relief rally in the U.S. stock market and the easing of the dollar's strength, which lowered the won-dollar exchange rate, improved foreign demand conditions," adding, "However, Meta's (6.5%) earnings report released after the U.S. market close showed an earnings shock due to intensified competition with other platform companies and reduced advertising, causing its after-hours stock price to fall by over 4%, which is a burden."

Among the top market capitalization stocks, LG Energy Solution is up 4% following management's goal to triple sales within five years and expectations of improved profitability in the second half. LG Chem is also surging 5%. Samsung Biologics, NAVER, and Samsung SDI are recording gains around 2%. Meanwhile, Samsung Electronics is flat, and SK Hynix, Hyundai Motor, and Kia are showing slight declines.

The non-metallic minerals sector showed the strongest gains, rising over 7%, driven by the Posco Chemical effect. The steel & metals, chemical, and machinery sectors are also up by about 1%. Posco Chemical surged more than 15% after news that it secured an additional order worth 13.7696 trillion KRW from General Motors (GM) for cathode materials, a key component of electric vehicle batteries.

The KOSDAQ index, which recovered above 800 points from the opening, rose 3.60 points (0.45%) to 799.30, with a slight decrease in the gain. Individuals are net buyers with about 63.8 billion KRW, while foreigners and institutions are net sellers of about 36.8 billion KRW and 21.2 billion KRW, respectively. In KOSDAQ, the metals sector showed gains over 2%, and non-metallics rose about 1%, showing the strongest performance. Transportation, pharmaceuticals, medical precision, entertainment & culture, and tech growth companies showed weakness.

Among the top market cap stocks, L&F and Alteogen are slightly down, while EcoPro BM, Celltrion Healthcare, HLB, and Kakao Games are slightly up. Notably, Cheonbo is recording nearly a 3% gain.