KOSPI Recovers to 2500 Level at Closing... Foreigners Net Buyers for 7 Consecutive Days

KOSPI Rises 0.89% Compared to Previous Session
Foreigners and Institutions Continue Joint Buying Trend

Domestic stock markets recovered the 2500 level on the 29th, supported by simultaneous buying from foreigners and institutions. It was the first time in 10 trading days since the 15th that the KOSPI index closed above 2500.

On the 29th, the KOSPI index closed at 2500.65, up 22.09 points (0.89%) from the previous session. On the same day, the index started with a 0.50% rise, broke through the 2500 level during the session, but gave up some gains due to profit-taking just before the close.

In the stock market, foreigners net bought stocks worth 546.8 billion KRW, and institutions net bought 217.2 billion KRW. Conversely, individuals net sold stocks worth 727.6 billion KRW. Foreigners maintained a net buying trend for 7 consecutive trading days, and institutions for 3 consecutive trading days.

By sector, electricity and gas (4.94%), distribution (3.85%), insurance (3.46%), steel and metals (2.37%), construction (2.29%), transportation equipment (1.99%), finance (1.97%), securities (1.79%), pharmaceuticals (1.29%), chemicals (1.23%), and non-metallic minerals (1.20%) closed higher. In contrast, services (-1.13%) and transportation and warehousing (-0.67%) underperformed.

Samsung Electronics closed up 1.36%, as it is considered a beneficiary of the U.S. semiconductor support law and is expected to receive large subsidies. Samsung Biologics rose 3.49% on expectations of a positive impact following the introduction of regulatory bills against Chinese biotech companies in the U.S. Congress. On its first day after moving to the KOSPI market, L&F fell 8.97%, with industry analysts forecasting that without significant fundamental changes amid industry uncertainty, it will be difficult to resolve undervaluation.

On the same day, the KOSDAQ index closed at 819.14, down 18.10 points (2.16%) from the previous trading day. The index started slightly higher by 0.47% but continued to decline early in the session, falling below the 820 level.

Within the KOSDAQ market, sectors such as general electrical and electronics (-5.73%), software (-4.90%), entertainment and culture (-4.46%), transportation equipment and parts (-4.15%), internet (-3.43%), computer services (-3.07%), medical precision instruments (-2.51%), machinery and equipment (-2.48%), and finance (-2.28%) underperformed. Only transportation (3.58%), paper and wood (1.41%), and chemicals (0.83%) closed higher.

Ji-won Kim, an analyst at KB Securities’ Market Consulting Team, said in a report after the market close, "Rather than any special issue, differentiation among indices appeared due to supply and demand flows," adding, "With foreigners net buying both spot and futures and institutions also net buying, the top market capitalization stocks in KOSPI generally showed strength, recovering the 2500 level."

She continued, "On the other hand, KOSDAQ showed weakness centered on secondary batteries and entertainment due to simultaneous net selling by foreigners and institutions," and added, "This week, earnings reports from Microsoft, Alphabet, Amazon, Meta, and Apple are all scheduled, so it is necessary to keep in mind the possibility of increased volatility depending on results and guidance."