Foreigners' Net Buying at a Crossroads.. KOSPI 'Rises'.. KOSDAQ 'Mixed'

[Asia Economy Reporter Junho Hwang] On the afternoon of the 9th, the KOSPI showed a rise of over 1% as foreign investors' net buying strengthened. In contrast, the KOSDAQ reversed to a decline as the weakness in the KOSDAQ150, which continued through the morning, intensified.

As of 1:30 PM that day, the KOSPI was at 2,423.82, up 1.03% from the previous close. Following the net buying by institutions (366 billion KRW) throughout the morning, foreign investors' net buying (167 billion KRW) strengthened, pushing the index up by more than 1%. Individual investors took the opportunity for profit-taking after a long time, recording net selling worth 543.6 billion KRW.

Among all stocks, 562 stocks rose. In particular, the KOSPI 200 rose 1.06%, showing a rise mainly in large-cap stocks. The top market capitalization stocks also rose slightly. The unchanging market leader Samsung Electronics and the second largest by market cap, LG Energy Solution, showed gains of 0.49% and 0.51% respectively amid foreign investors' net buying. NAVER, which showed strength early in the session (1.97%), maintained its upward trend, and LG Chem (3.47%) surged in the afternoon.

On the previous day, LG Chem announced that it would halt China's participation in the multinational Phase 3 clinical trial of its gout drug under development, Tigulixostat. Although it was news of giving up clinical trials in China, where there are many gout patients, the stock price appears to have risen due to growing expectations for the new drug development.

By industry, the electric and gas sector, which showed strength early in the session (5.60%), continued its strong performance, recording the highest rise. The rise in the electric and gas sector was largely influenced by Korea Electric Power Corporation (KEPCO) jumping 9.06% from the previous close. KEPCO's stock price rise is analyzed to reflect expectations following news that the banking sector has stepped in as a savior for KEPCO, which is expected to post a 30 trillion KRW deficit this year.

The KOSDAQ is showing mixed trends. The KOSDAQ, which showed an upward trend throughout the morning, is currently down 0.09% at 712.70. Despite net selling by foreigners and institutions, individuals are recording net buying worth 131 billion KRW. Among the top market capitalization stocks, Kakao Games (1.46%), Cheonbo (1.73%), and Rino Industrial (0.81%) are showing strength.