Foreign Investors Net Buy 900 Billion Won After 1 Trillion Won the Previous Day
On June 5, the domestic stock market closed higher across the board, continuing the so-called "honeymoon rally" (a period of stock market strength at the beginning of a new administration). Despite strong selling by individual investors, the index was supported by net inflows from foreign investors for the third consecutive trading day.
On this day, the KOSPI finished trading at 2,812.05, up 41.21 points (1.49%) from the previous session. This is the first time in about 10 months that the KOSPI has surpassed the 2,800 mark, with the last occurrence on June 20 of the previous year. Earlier in the day, the index opened at 2,790.33, up 19.49 points (0.70%). Individual investors sold a total of 1.1855 trillion won, but foreign investors and institutional investors absorbed the selling by net buying 920.7 billion won and 280.5 billion won, respectively.
By sector, nuclear power-related stocks stood out. Doosan Enerbility surged 7.62% on news that Korea Hydro & Nuclear Power (KHNP) had signed the main contract for the new Dukovany Units 5·6 nuclear power plant project in the Czech Republic. In addition, Hanwha Aerospace (7.10%), Samsung C&T (7.03%), Kia (3.91%), SK hynix (3.22%), NAVER (3.07%), and Samsung Electronics (2.25%) led the large-cap stocks. In contrast, KB Financial Group (-1.48%), Samsung Biologics (-1.45%), and Shinhan Financial Group (-1.17%) ended lower.
On the same day, the KOSDAQ closed at 756.23, up 6.02 points (0.80%). The index had opened at 751.59, up 1.38 points (0.18%). While individual investors made net sales of 42.3 billion won, foreign investors and institutional investors purchased 38.7 billion won and 9 billion won, respectively.
The top market cap stocks on the KOSDAQ showed mixed performances. Reno Industrial (8.14%), EcoPro BM (4.91%), Samchundang Pharm (4.75%), EcoPro (3.87%), HLB (1.75%), and Rainbow Robotics (0.52%) ended higher, while LIG Chem Bio (-3.76%), Alteogen (-3.28%), Peptron (-2.30%), Hugel (-2.10%), Kolon TissueGene (-1.89%), and Classys (-0.85%) closed lower.
By industry, insurance (5.88%), other capital goods (3.90%), electronic equipment (3.68%), furniture (3.22%), and steel (3.09%) showed notable gains, while life sciences (-2.20%), transportation (-1.12%), department stores (-0.74%), non-ferrous metals (-0.70%), banks (-0.67%), and securities (-0.56%) saw declines.
Kim Ji-won, a researcher at KB Securities, commented, "With active buying from foreign investors, the upward trend centered on large-cap stocks continued from yesterday into today. While previously underperforming sectors such as semiconductors, automobiles, secondary batteries, and internet stocks showed strength, some profit-taking occurred in financial sectors (banks, securities) and holding companies, which had seen a sharp rally in the previous session."
Meanwhile, in the United States, concerns about the economy are mounting as last month's private employment and service sector indices fell well short of market expectations. Kim added, "There is growing attention on the non-farm payrolls report to be released tomorrow. Although next week will see the release of U.S. inflation data and the possibility of a U.S.-China phone summit, domestic stock market movements are likely to be more heavily influenced by policy momentum and supply-demand factors."
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