"Foreign Buying Pressure"... KOSPI and KOSDAQ Close Up Over 1%

Thanks to foreign buying pressure, the KOSPI index recovered to the 2650 level on the 28th.

On that day, the KOSPI index closed at 2652.29, up 27.24 points (1.04%) from the previous trading day. Foreigners purchased 459.4 billion KRW, and individuals bought 41.3 billion KRW. Individuals sold off 539 billion KRW worth of stocks.

Among the top market capitalization stocks, Samsung Life Insurance (11.73%), Samsung C&T Corporation (5.63%), Kia (4.53%), Hyundai Motor (3.98%), Hyundai Mobis (3.64%), SK Hynix (2.73%), POSCO Holdings (2.46%), Shinhan Financial Group (2.14%), and Naver (2.00%) rose. On the other hand, Kakao (-2.11%), Meritz Financial Group (-1.52%), LG Energy Solution (-0.74%), Samsung Biologics (-0.74%), and LG Chem (-0.32%) declined.

By industry sector, insurance (5.05%), transportation equipment (3.82%), distribution (2.72%), machinery (2.58%), construction (2.01%), medical precision (1.79%), and securities (1.68%) rose. Pharmaceuticals (-0.33%) and food and beverages (-0.28%) fell.

The KOSDAQ index closed at 863.39, up 9.64 points (1.13%) from the previous session. The index started at 859.78, up 6.03 points (0.71%), and extended its gains. Foreigners alone purchased 121.8 billion KRW. Institutions and individuals sold 44 billion KRW and 81.6 billion KRW, respectively.

Among the top market capitalization stocks, Juseong Engineering (13.96%), EO Technics (12.16%), EcoPro BM (8.25%), Dongjin Semichem (4.45%), Alteogen (4.44%), Lino Industrial (3.81%), and Classys (2.20%) rose. Meanwhile, Enchem (-11.92%), HPSP (-1.32%), and Shinsung Delta Tech (-1.20%) declined.

Ji-won Kim, a researcher at KB Securities, analyzed, "Thanks to net buying of spot and futures by foreigners, both markets succeeded in rebounding by over 1%. However, the KOSPI rebounded as buying pressure centered on automobiles and insurance emerged despite profit-taking pressure due to retreating valuation upgrade expectations and dividend cut issues. The semiconductor sector, which had a large drop the previous day, also turned positive and led the index."

He added, "The KOSDAQ significantly recovered the previous day's losses thanks to the rebound in secondary batteries. EcoPro BM, which is preparing for a KOSPI listing, surged over 8%, contributing to improved investor sentiment in the secondary battery sector." The defense industry sector also showed strength following news that the government will newly include defense industry in new growth technology business facilities and apply a tax credit of up to 18%.

On the same day, the won-dollar exchange rate in the Seoul foreign exchange market closed at 1,333.6 won, up 2.6 won from the previous trading day.