Foreigners' Net Buying Leads KOSPI to Close Higher... Samsung Electronics and SK Hynix Up

KOSDAQ Weakens Led by Bio and Robotics Stocks
"Food and Entertainment Shares Strong... Caution Needed Amid 'Impeachment Uncertainty'"

The KOSPI index closed higher on the 19th as foreign net buying continued. In particular, buying momentum in the electrical and electronics sector persisted, with both Samsung Electronics and SK Hynix showing gains.

On the day, the KOSPI closed at 2,628.62, up 16.28 points (0.62%) from the previous day. The index started at 2,613.48, up 1.14 points (0.04%), and maintained an upward trend until the close. Foreigners and institutions net purchased stocks worth 307.1 billion KRW and 285.7 billion KRW, respectively. Individuals net sold stocks worth 675.8 billion KRW.

The KOSPI and KOSDAQ indices are displayed on the status board in the dealing room of Hana Bank headquarters in Jung-gu, Seoul. Photo by Yonhap News

Among the top market capitalization stocks, POSCO Holdings (2.46%), Hyundai Mobis (2.27%), Hyundai Motor (1.75%), LG Energy Solution (1.69%), Samsung Electronics (1.56%), Shinhan Financial Group (1.50%), Samsung Electronics Preferred (1.46%), KB Financial Group (1.25%), SK Hynix (1.23%), and Meritz Financial Group (1.09%) rose. On the other hand, HD Hyundai Heavy Industries (-1.74%), Hanwha Ocean (-1.60%), Kakao (-1.59%), and Hanwha Aerospace (-1.05%) declined.

By sector, insurance (1.79%), telecommunications (1.67%), medical precision instruments (1.57%), food and tobacco (1.47%), entertainment and culture (1.43%), and electrical and electronics (1.22%) showed strength. Conversely, transportation and warehousing (-1.87%), general services (-0.93%), construction (-0.83%), metals (-0.57%), information technology (IT) services (-0.32%), and pharmaceuticals (-0.21%) sectors fell.

Ji-won Kim, a researcher at KB Securities, explained, "The KOSPI rose as foreigners continued net buying. In particular, net buying in the electrical and electronics sector extended, with Samsung Electronics and SK Hynix both rising over 1%." He added, "Samsung Electronics announced plans to restore competitiveness and actively pursue mergers and acquisitions (M&A) at its shareholders' meeting, and SK Hynix delivered news of the world's first sample supply of 12-layer High Bandwidth Memory (HBM)4, indicating a favorable trend for domestic semiconductor stocks."

Meanwhile, the KOSDAQ index closed at 738.35, down 7.19 points (0.96%) from the previous session. The index opened at 743.21, down 2.33 points (0.31%). Foreigners and institutions net sold stocks worth 173.8 billion KRW and 22.9 billion KRW, respectively, while individuals purchased stocks worth 217.6 billion KRW.

Among the top market capitalization stocks, SM Entertainment (6.72%), Celltrion Pharm (0.74%), Pearl Abyss (0.66%), and EcoPro BM (0.54%) rose. Conversely, Voronoi (-6.28%), HLB (-6.26%), Alteogen (-5.52%), Classys (-4.97%), Rainbow Robotics (-4.78%), Samchundang Pharm (-4.29%), Pharma Research (-4.11%), Peptron (-3.96%), Rigachem Bio (-2.72%), and ABL Bio (-1.46%) declined.

Researcher Kim stated, "The Korean stock market was weak in the shipbuilding, robotics, and healthcare sectors today," adding, "In the KOSDAQ market, profit-taking on Alteogen and caution ahead of the U.S. Food and Drug Administration (FDA) approval for HLB affected the market. On the other hand, food and beverage and entertainment stocks showed strength due to expectations of strong earnings."

Additionally, Kim noted, "Since the date for the impeachment trial verdict has not yet been set, there is a possibility it will be postponed to next week. The longer the uncertainty persists, the more market momentum may weaken, so preparation is necessary."