Foreigners and Institutions 'Buy'... KOSPI Closes Higher on Semiconductor Stock Rally

Foreign Institutions Net Buy 475.3 Billion KRW and 366.5 Billion KRW Respectively

The KOSPI closed the session on an upward trend, supported by net buying from foreigners and institutions. This is analyzed to be due to expectations of an interest rate freeze following the weak employment data released ahead of the June Federal Open Market Committee (FOMC) meeting.

On the 9th, the KOSPI closed at 2,641.16, up 1.16% (30.31 points) from the previous trading day. The KOSPI started the day with a rise of around 0.5% compared to the previous day and maintained its upward momentum throughout the session.

In the KOSPI market, net buying by foreigners and institutions was effective. While individuals sold stocks worth 832.4 billion KRW, foreigners and institutions bought stocks worth 475.3 billion KRW and 366.5 billion KRW, respectively. The won-dollar exchange rate recorded the 1,290 won level, supported by the overnight dollar weakness and net buying in the domestic stock market. Lee Kyung-min, a researcher at Daishin Securities, analyzed, “Ahead of next week’s June FOMC, expectations for an interest rate freeze still dominate, and the KOSPI showed an upward trend in line with the strong performance of US big tech stocks.”

In the market, influenced by the rise in US semiconductor stocks, the electrical and electronics sector showed a strong performance with gains in the 2% range, with Samsung Electronics and SK Hynix rising 1.55% and 5.2%, respectively. The pharmaceutical sector also showed gains in the 1% range. Samsung Biologics (2.04%) benefited from signing a letter of intent for a contract worth 535 billion KRW for contract manufacturing of biopharmaceuticals with Pfizer. Among other large-cap stocks, LG Energy Solution (3.05%), LG Chem (2.04%), Samsung SDI (0.82%), Hyundai Motor (0.2%), Kia (1.84%), and POSCO Holdings (1.55%) closed higher.

On the same day, the KOSDAQ index also closed at 883.71, up 0.87% (7.58 points) from the previous trading day, supported by net buying from foreigners and institutions. Foreigners and institutions bought stocks worth 97.5 billion KRW and 126.4 billion KRW, respectively, while individuals alone sold stocks worth 208.3 billion KRW.

Among the large-cap stocks, EcoPro (1.82%), L&F (1.68%), and JYP Ent. (2.26%) rose, while EcoPro BM (-0.19%), HLB (-1.62%), Celltrion Pharm (-0.12%), Kakao Games (-0.13%), and Pearl Abyss (-3.17%) declined.