KOSPI Rises as Individuals and Foreigners Turn to Net Buying... KOSDAQ Declines

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The KOSPI index is on the rise as individuals and foreigners have shifted from net selling to net buying.

As of 11:18 a.m. on the 30th, the KOSPI index was recorded at 2,437.78, up 4.39 points (0.18%). The index started the day lower, dropping to 2,421.42, but showed an upward trend as foreigners switched to net buying. Although individuals, who had been net buyers, briefly turned to net selling, they returned to net buying afterward. Individuals and foreigners purchased approximately 8.5 billion KRW and 45.4 billion KRW worth of stocks respectively, while institutions sold about 54.2 billion KRW worth.

Among the top market capitalization stocks, POSCO Holdings (1.70%), LG Chem (1.68%), Samsung Electronics (0.66%), and SK Hynix (0.12%) rose. LG Energy Solution (-1.23%), Samsung Biologics (-0.34%), and Kia (-0.15%) declined. Samsung SDI, Hyundai Motor, and NAVER remained flat.

By sector, electric and gas utilities (1.37%), securities (1.18%), finance (0.79%), and construction (0.78%) showed strength. Machinery (-1.93%), non-metallic minerals (-1.92%), transportation and warehousing (-0.37%), and chemicals (-0.09%) were down.

It is analyzed that expectations of China easing its COVID-19 policies have driven foreign capital inflows. Seo Sang-young, head of Media Content at Mirae Asset Securities, explained, "There are expectations that China’s COVID-19 policies will be relaxed, which is one of the factors leading foreigners to switch to net buying. However, rather than a broad rise across the domestic stock market, the increase was centered on some large technology stocks."

On the 29th (local time), the U.S. stock market closed mixed ahead of economic data releases and a speech by Federal Reserve Chairman Jerome Powell. The Dow Jones Industrial Average rose 3.07 points (0.01%) to 33,852.53, the large-cap S&P 500 index fell 6.31 points (0.16%) to 3,957.63, and the tech-heavy Nasdaq index dropped 65.72 points (0.59%) to 10,983.78.

At the same time, the KOSDAQ index traded at 725.72, down 1.82 points (0.25%) from the previous session. Individuals alone purchased about 99 billion KRW worth, while foreigners and institutions net sold approximately 77.6 billion KRW and 15.1 billion KRW respectively.

Among the top market capitalization stocks, EcoPro (1.55%) and HLB (0.15%) rose. Conversely, Cheonbo (-1.74%), EcoPro BM (-1.72%), and Pearl Abyss (-1.37%) declined.