Foreigners Bought, but Pension Funds Sold

KOSPI and KOSDAQ Close Higher
Foreign Investors Lead Gains with Net Buying
Institutions, Mainly Pension Funds and Financial Investment Firms, Net Sell

On the 11th, the KOSPI opened sharply higher influenced by the surge in the New York stock market, shown here at the Hana Bank dealing room in Jung-gu, Seoul. On that day, the KOSPI opened at 2466.90, up 64.67 points (2.69%) from the previous trading day. The won-dollar exchange rate started at 1347.5 won, down 30.0 won from the previous trading day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Hwang Junho] On the 23rd, the KOSPI closed higher as foreign investors continued net buying. Following the previous day's U.S. stock market, where concerns about economic slowdown eased due to strong earnings reports from the retail sector, the KOSPI maintained its upward trend amid a weaker dollar.

On this day, the KOSPI closed at 2418.01, up 12.74 points (0.53%) from the previous day. In the morning, individual investors and foreigners engaged in concentrated net buying, but individuals (net selling of 95.4 billion KRW) reversed direction in the afternoon. However, with foreigners continuing slight net buying (83 billion KRW), the index followed an upward curve. Institutions sold stocks (17.5 billion KRW) again on the day. In particular, pension funds and investment trusts continued their net selling streak for eight consecutive trading days.

Among all stocks, 663 rose. The increase was larger in mid-cap stocks (1.17%) and small-cap stocks (1.14%) than in large-cap stocks (0.40%). Most of the top market capitalization stocks rose. However, LG Energy Solution (-1.75%), Samsung Biologics (0.00%), and SK Hynix (0.00%) either declined or remained flat. Samsung Electronics, the unwavering KOSPI leader, traded up 0.66% at 61,000 KRW. Samsung SDI (3.09%) and LG Chem (2.04%) showed strong gains among the top stocks.

By sector, electricity & gas, paper & wood, chemicals, and services showed gains exceeding 1%. The stock hitting the upper price limit was Kidari Studio, which closed at 8,550 KRW, up 29.94% from the previous session after five consecutive trading days of gains. Kidari Studio's main business is currently web novel and webtoon content platform services.

The KOSDAQ showed a higher rate of increase than the KOSPI. The KOSDAQ recorded 725.59, up 1.87% from the previous session. Foreigners and institutions led the index's rise with net buying of 127.2 billion KRW and 88.3 billion KRW, respectively. Meanwhile, individuals realized profits with net selling of 201.3 billion KRW.

Among all stocks, 1,083 rose. Most of the top market capitalization stocks increased. Notably, gaming and entertainment stocks such as Studio Dragon (11.77%), WeMade (6.74%), Pearl Abyss (5.28%), and Kakao Games (5.22%) showed remarkable gains. This rise is analyzed as being driven by expectations of easing or lifting of China's 'Hanhanryeong' restrictions. Last month, director Hong Sang-soo's film Gangbyeon Hotel (2018) began streaming under the title Jiangbian Luguan (江邊旅館) on China's largest OTT platform, Tencent Spin, which is seen as a catalyst for expanding Korean content's entry into the Chinese market, boosting stock prices.

On the day, the won-dollar exchange rate recorded 1,351.80 KRW, down 0.35% from the previous day.

Meanwhile, on the 24th, the Bank of Korea's Monetary Policy Committee meeting is scheduled, and a general strike by the Cargo Solidarity Union is planned.