Foreign Investors Maintain Net Buying in Local Gift Market
Morgan Stanley: "Time to Increase Korean Stock Allocation"
[Asia Economy Reporter Minji Lee] The KOSPI and KOSDAQ indices continue to maintain an upward trend in the afternoon session. With strong net buying from foreign investors, the KOSDAQ index is rising by more than 2%.
As of 1:41 PM on the 6th, the KOSPI stood at 2245.54, up 1.33% (29.40 points) compared to the previous trading day. In the market, foreign investors are maintaining net buying by purchasing stocks worth 147.4 billion KRW in the cash market and 208.2 billion KRW in futures. Institutions bought stocks worth 1.6 billion KRW, but their net buying volume has decreased compared to the morning session. Individual investors sold stocks worth 146.7 billion KRW alone.
Top market capitalization stocks are also showing strong gains across the board. Samsung Electronics traded at 56,600 KRW, up 1.07%. LG Energy Solution (2.77%), SK Hynix (0.89%), LG Chem (4.46%), Samsung SDI (3.34%), Hyundai Motor (0.28%), Kia (0.14%), and NAVER (1.83%) all showed upward trends.
At the same time, the KOSDAQ index stood at 704.07, up 2.73% (18.73 points) from the previous trading day. In the market at this time, foreign and institutional investors are increasing their net buying, purchasing stocks worth 124 billion KRW and 49.6 billion KRW respectively. Individual investors sold stocks worth 168.7 billion KRW alone.
Top market capitalization stocks on the KOSDAQ also showed significant gains. Celltrion Healthcare (0.59%), EcoPro BM (4.16%), L&F (7.86%), HLB (2.65%), Kakao Games (0.24%), EcoPro (6.25%), Pearl Abyss (2.8%), Celltrion Pharm (1.58%), Lino Industrial (3.96%), and Studio Dragon (2.59%) all rose.
Earlier, global investment bank (IB) Morgan Stanley issued a report recommending an overweight position on Korean stocks. Morgan Stanley analyzed, “Considering the won-dollar exchange rate trend, the exchange rate is expected to peak at 1,480 KRW by the end of the year, and if interest rates rise, the fourth quarter could be a good entry point for foreign investors.”
Additionally, Morgan Stanley stated, “The best opportunity in the new cycle is to increase the weighting of the Korean and Taiwanese markets, which hold leading positions in the Asian stock markets,” and set a KOSPI target of 2,600 for the first half of next year.
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