KOSPI Closes Higher... Foreign Investors Net Buyers for 5 Consecutive Trading Days

On the 28th, the KOSPI index opened at 2437.57, 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 1306 won, down 7.3 won. Photo by Moon Honam munonam@

[Asia Economy Reporter Junho Hwang] On the afternoon of the 3rd, the stock market closed higher as foreign investors' sentiment recovered despite external negative factors. Foreign investors have been net buyers for five consecutive trading days as of this day.

The KOSPI closed at 2461.45, up 0.89% from the previous session. While individuals and institutions engaged in profit-taking, only foreigners entered low-priced buying, leading the market to close on an upward trend. Individuals and institutions were net sellers of 332.2 billion KRW and 144.6 billion KRW respectively, whereas foreigners showed a net buying intention of 473.2 billion KRW.

Among all stocks, 576 stocks declined while 266 stocks recorded gains. Among the top market capitalization stocks, all stocks except Samsung Electronics and Kia rose. In particular, with Tesla surpassing $900 per share in the US stock market the previous day, secondary battery stocks gained attention, including LG Energy Solution (4.80%) and Samsung SDI (2.45%). On this day, the internet and gaming service sectors showed significant gains, with NAVER jumping 3.86%.

By sector, besides the service industry (2.84%), the insurance sector rose 2.89%, recording the highest increase among sectors. Within the insurance sector, Meritz Fire & Marine Insurance (6.79%), DB Insurance (6.08%), Heungkuk Fire & Marine Insurance (4.14%), and Hyundai Marine & Fire Insurance (3.98%) showed strength. Additionally, the food and beverage sector rose 1.24% amid expectations of a positive spillover effect for domestic companies due to China's ban on food imports from Taiwan. On this day, Crown Confectionery hit the upper price limit.

The KOSDAQ also closed at 815.36, up 1.37% from the previous day. Foreigners and institutions were net buyers of 80.9 billion KRW and 611.1 billion KRW respectively, while individuals showed a net selling intention of 134.8 billion KRW, leading the index to close higher.

Among all stocks, 1,011 stocks showed gains. Among the top market capitalization stocks, Kakao Games (13.98%) and Pearl Abyss (9.54%) recorded significant increases.

Researcher Kyungmin Lee of Daishin Securities said, "The issue of intensified US-China conflict due to Nancy Pelosi's visit to Taiwan appears to be a short-term volatility factor," adding, "Economic retaliation measures and military conflict possibilities between the US and China are decreasing, and it is expected that China's actions will be limited to simple military demonstrations."

Researcher Seokhwan Kim of Mirae Asset Securities also said, "In the midst of sharp US-China conflicts over the Taiwan issue, the easing of military conflict possibilities and the rebound of the Chinese stock market have been reflected in the stock market."

Meanwhile, the won-dollar exchange rate surged to 1,315 KRW in the morning but partially gave up gains due to easing dollar strength pressure and foreign investors' net buying in the stock market. The closing price was 1,310.30 KRW, up 0.43% from the previous day.