KOSPI Ends Slightly Higher... Foreign Investors Switch to 'Buy'

[Asia Economy Reporter Hwang Yoon-joo] The KOSPI and KOSDAQ closed with slight gains. Unlike in the morning, foreign investors switched to 'buying' in the afternoon, but the KOSPI failed to reclaim the 2460 level.

Employees are working in the dealing room of Hana Bank in Jung-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

On the 21st, the KOSPI closed at 2458.96, up 0.16% (3.84 points) from the previous day. The KOSPI started at 2457.51, up 0.10% (2.39 points), but soon turned downward. After showing slight weakness in the morning, the KOSPI successfully rebounded around lunchtime.

Lee Jae-man, a researcher at Hana Securities, evaluated, "The domestic stock market showed high volatility, with fierce buying and selling amid unclear direction due to the U.S. stock market holiday the previous day, repeatedly alternating between gains and losses."

The index's direction was influenced by foreign investors' supply and demand. Individuals and foreigners net bought 34.1 billion KRW and 19.4 billion KRW, respectively. In contrast, institutions alone net sold 91.8 billion KRW. In the futures market, foreigners net sold 210.5 billion KRW, while institutions net bought 111.7 billion KRW.

Among the top 10 market capitalization stocks, only LG Energy Solution +0.78%, LG Chem +3.00%, and Kia +0.39% rose. Samsung SDI and Hyundai Motor closed flat. Among the declining stocks, NAVER -1.60% and SK Hynix -1.41% stood out.

By sector, construction (+3.8%) showed strength. Ahead of the March pre-sale event, GS Construction rose 6.36%. Non-metallics +2.52% and chemicals +1.82% sectors also showed upward trends.

On the 17th, visitors are touring the LG Energy Solution exhibition hall at 'InterBattery 2022' held at COEX in Samseong-dong, Gangnam-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

The KOSDAQ closed at 793.42, up 0.57% (4.53 points) from the previous day. The KOSDAQ started at 789.45, up 0.07% (0.56 points), turned upward around 10:37 AM, and closed with slight gains.

The KOSDAQ was driven up by individual investors. Individuals alone net bought 49.2 billion KRW. Foreigners and institutions net sold 13.8 billion KRW and 29.7 billion KRW, respectively.

The top 10 market capitalization stocks showed mixed trends. Notably, the battery sector's rise was prominent. Ecopro BM and Ecopro surged by +9.16% and 8.44%, respectively. Ecopro also rose 5.30%. SM, which is attracting attention due to a management rights dispute, closed up 1.40% at 123,500 KRW.

Lee Kyung-min, a researcher at Daishin Securities, analyzed, "The KOSPI lacked clear buying entities, and institutions, particularly financial investment firms, net sold 190 billion KRW, which weighed on the market."

He added, "Investor sentiment is shrinking amid market concerns about the monetary policy path. In the U.S., where financial market trading resumed, stock futures declined, U.S. Treasury yields resumed their upward trend, and in Korea, the inversion of short- and long-term interest rates continued."

Meanwhile, in the Seoul foreign exchange market, the won-dollar exchange rate closed at 1295.9 won, up 1.4 won from the previous day.