Foreign Investors Focus on Buying Semiconductor and 2nd Battery Stocks
Experts Say "Corporate Earnings and Economic Indicator Releases Will Increase Volatility After the Holiday"
[Asia Economy Reporter Minji Lee] The KOSPI and KOSDAQ indices closed higher ahead of the Lunar New Year holiday break. This was thanks to foreign investors buying large amounts of semiconductor and secondary battery-related stocks.
On the 20th, the KOSPI closed at 2395.26, up 0.63% (14.92 points) from the previous trading day. Although mixed trends were seen during the session due to heightened caution ahead of the holiday, the strong buying by foreigners and the rise in Chinese markets helped push the index higher. Foreign investors net bought stocks worth 230.7 billion KRW during the day, institutions net bought 8.3 billion KRW, while individual investors sold stocks worth 245.2 billion KRW on their own.
By sector, construction (3.9%) and steel (2.24%) showed strong performance. In construction, expectations for improved earnings were reflected, with Hyundai Construction (7.2%), GS Construction (4.6%), and Daewoo Construction (4%) showing significant gains. In the steel sector, boosted by expectations of improved demand from China, Sam-A Aluminum (7.3%), Korea Steel (2.6%), and POSCO Holdings (2.6%) rose.
Among the top market capitalization stocks, SK Hynix rose 2.46%, driven by concentrated buying from foreign investors. Investor sentiment toward Samsung Electronics also improved, with the company rising 0.49% on the day. Secondary battery-related stocks also showed strength, with LG Energy Solution (2.96%), Samsung SDI (1.48%), and LG Chem (0.64%) posting gains. Additionally, Hyundai Motor (0.3%) and Kakao (0.66%) also showed upward trends.
The KOSDAQ index closed at 717.97, up 0.71% (5.08 points) from the previous trading day. In the market, institutions and foreigners bought stocks worth 45.4 billion KRW and 2.7 billion KRW respectively, while individual investors recorded net sales of 32.4 billion KRW alone.
Among the top market capitalization stocks, EcoPro BM (1.95%), L&F (1.29%), Kakao Games (0.56%), Pearl Abyss (0.57%), and Studio Dragon (1.24%) rose. On the other hand, pharmaceutical and bio-related stocks such as Celltrion Healthcare (-0.34%), Celltrion Pharm (-1.21%), and HLB (-0.48%) declined.
Meanwhile, the KOSPI is expected to show high volatility after the Lunar New Year holiday. This is due to upcoming economic indicators from major countries such as the US and China, corporate earnings announcements, and the February Federal Open Market Committee (FOMC) results. Given the sharp rebound in the stock market since the beginning of the year, caution regarding volatility is necessary. Lee Kyung-min, a researcher at Daishin Securities, said, “With recent valuation pressures increasing and the KOSPI’s recovery above 2400 being limited, short-term volatility may rise after the Lunar New Year holiday. It is a time to refrain from aggressive trading strategies and consider profit-taking.”
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