Foreign Buying Drives KOSPI Up Over 2%... Recovers to 2200 Level

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The KOSPI index is showing an upward trend as foreign investors maintain a buying advantage.

As of 11:20 a.m. on the 4th, the KOSPI index was recorded at 2200.35, up 44.86 points (2.08%) from the previous trading day. This marks the first time in two trading days that the KOSPI index has recovered the 2200 level during intraday trading. The index started at 2189.51, up 34.02 points (1.58%), then expanded its gains and surpassed the 2200 mark. Since then, it has fluctuated around the 2200 level. Foreign investors purchased stocks worth approximately 173.9 billion KRW, while individuals and institutions sold about 146.7 billion KRW and 24.1 billion KRW respectively.

Among the top market capitalization stocks, Samsung Electronics, which announced plans for mass production of 1.4-nanometer (nm, one billionth of a meter) chips in 2027, rose the most sharply by 3.95%. This was followed by SK Hynix (3.49%), LG Chem (2.24%), Hyundai Motor (1.70%), LG Energy Solution (1.29%), Kia (1.25%), Samsung SDI (0.92%), and Samsung Biologics (0.87%). On the other hand, NAVER, which was reported to have acquired a North American secondhand fashion platform, fell more than 7%. Kakao also dropped by 2.63%.

By sector, steel & metals (3.34%), medical precision instruments (3.27%), construction (3.23%), machinery (3.05%), and electrical & electronics (3.02%) showed strong gains. Meanwhile, service industries (-0.90%), food & beverage (-0.86%), and telecommunications (-0.12%) experienced declines.

Seo Sang-young, head of the Media Content Division at Mirae Asset Securities, explained, "The stock market had experienced a significant decline, and now inflows are occurring as a rebound. The buying sentiment for a rebound is increasing." Lee Jae-sun, a researcher at Hyundai Motor Securities, also said, "Because the market dropped sharply last week, buying momentum has come in."

On the 3rd (local time), the U.S. stock market closed higher as rebound buying was confirmed. The Dow Jones Industrial Average rose 765.38 points (2.66%) to 29,490.89, the large-cap S&P 500 index gained 92.81 points (2.59%) to 3,678.43, and the tech-heavy Nasdaq index increased 239.82 points (2.27%) to 11,815.44. Rebound buying was confirmed following last month's plunge. During September, the Dow fell 8.8%, the S&P 500 dropped 9.3%, and the Nasdaq declined 10.5%.

At the same time, the KOSDAQ index traded at 688.53, up 15.88 points (2.36%) from the previous trading day. It briefly recovered the 690 level during intraday trading but gave back some gains. Institutions purchased about 57.7 billion KRW worth of stocks, while individuals and foreigners sold approximately 27.0 billion KRW and 22.7 billion KRW respectively.

Among the top market capitalization stocks, Pearl Abyss (3.11%), HLB (2.57%), Studio Dragon (2.26%), and EcoPro BM (1.93%) rose. Conversely, EcoPro fell by 0.17%. JYP Ent. remained flat.