'Foreign Buying' Drives KOSPI Higher... Gains Limited by Weakness in Major Semiconductor Stocks

Joseon, Defense, and Bio Lead Index Rise
Reached 2520 Intraday but Retreats Due to Semiconductor Sell-Off

Supported by foreign investors' bargain buying, the KOSPI index, which showed strength in the early trading session on the 7th, ended the day by giving up some of its gains as profit-taking emerged in the semiconductor sector.

On the day, the KOSPI index closed at 2492.10, up 3.46 points (0.14%) from the previous trading day. The index opened at 2513.49, up 24.85 points (1.00%), and even surpassed the 2520 level during the session, but momentum waned toward the end of the trading day. Foreign investors purchased stocks worth 162 billion KRW, while institutions and individuals sold stocks worth 42.7 billion KRW and 203 billion KRW, respectively.

The KOSPI index and others are displayed on the status board of Hana Bank dealing room in Jung-gu, Seoul. Photo by Jo Yong-jun

Among the top market capitalization stocks, Samsung Biologics (3.91%), SK Innovation (3.03%), Hyundai Mobis (1.84%), Meritz Financial Group (1.15%), and LG Energy Solution (1.11%) closed higher. Meanwhile, SK Hynix (-2.40%), Samsung Electronics Preferred (-1.51%), and Kia (-1.39%) declined. Ji-won Kim, a researcher at KB Securities, explained, "The announcement that Nvidia's new product unveiled today will be equipped with Micron memory led to a flood of sell orders for Samsung Electronics and SK Hynix."

By sector, shipbuilding, defense, and biotech led the index gains, but the recent rally in large semiconductor stocks faltered, narrowing the overall index increase. Sectors such as general services (3.42%), electric and gas utilities (2.39%), pharmaceuticals (2.09%), construction (1.80%), transportation equipment (1.50%), machinery and equipment (1.09%), and securities (1.03%) rose, while information technology (IT) services (-1.39%), insurance (-0.92%), and electrical and electronics (-0.84%) sectors declined.

On the same day, the KOSDAQ index closed at 718.29, up 0.33 points (0.05%) from the previous session. The index opened at 719.68, up 1.72 points (0.24%), but failed to maintain its strength. Foreign investors and institutions net sold stocks worth 6.9 billion KRW and 70.1 billion KRW, respectively. Individuals purchased stocks worth 102.5 billion KRW.

Among the top market capitalization stocks, Kolon TissueGene (8.27%), JYP Ent. (7.89%), Ligand Chem Bio (4.87%), Rainbow Robotics (3.86%), Alteogen (3.33%), Hugel (3.04%), and Samchundang Pharm (2.69%) closed higher. Conversely, EO Technics (-4.46%), HPSP (-3.25%), Lino Industrial (-2.87%), Shinseong Delta Tech (-2.20%), EcoPro (-1.89%), and Classys (-1.15%) declined.