Foreign and Institutional Buying Drives KOSPI Above 2,900
US-China Tensions Ease, Policy Expectations Boost Market
Large-cap Stocks and Tech Sectors Lead Gains
On June 11, the KOSPI surpassed the 2,900 mark for the first time since January 2022. This rally was driven by a combination of easing tensions between the United States and China, expectations surrounding the Lee Jaemyung administration's policies, and strong buying by foreign investors.
On this day, the KOSPI closed at 2,907.04, up 35.19 points (1.23%) from the previous session. The index opened at 2,887.32, up 15.47 points (0.54%), and continued its upward trend throughout the session. Foreign investors purchased 165.6 billion won worth of shares, institutions bought 230.4 billion won, while individuals were net sellers of 366.2 billion won.
On the 11th, with the KOSPI settling in the 2900 range, the closing price of the KOSPI is displayed on the status board in the dealing room of Hana Bank in Jung-gu, Seoul. Photo by Yonhap News
Among the major stocks by market capitalization, Doosan Enerbility (up 6.46%), Samsung Life Insurance (up 5.42%), Hyundai Mobis (up 4.91%), Samsung C&T (up 4.15%), SK hynix (up 4.12%), Kia (up 2.54%), Hyundai Motor (up 2.03%), LG Energy Solution (up 1.39%), and Samsung Electronics (up 1.18%) all posted gains. In contrast, KB Financial Group (down 3.34%), Hanwha Aerospace (down 3.31%), HD Hyundai Heavy Industries (down 2.11%), and Shinhan Financial Group (down 1.81%) declined.
By sector, insurance (up 3.40%), machinery and equipment (up 3.05%), securities (up 2.81%), medical and precision instruments (up 2.77%), electricity and gas (up 2.00%), and electrical and electronics (up 1.87%) were strong performers. The entertainment and culture sector (down 1.86%) was weak.
Kim Ji-won, a researcher at KB Securities, stated, "The KOSPI closed above the 2,900 mark, driven by the US-China agreement, expectations for government policies, and strong foreign buying. The index was particularly boosted by net foreign purchases in the electrical and electronics sector. In addition to semiconductors, large-cap stocks in finance and automobiles also showed strength."
On the same day, the KOSDAQ index closed at 786.29, up 15.09 points (1.96%) from the previous session. The index opened at 775.43, up 4.23 points (0.55%), and extended its gains throughout the day. Foreign investors were net buyers of 213.5 billion won, institutions bought 111.6 billion won, while individuals sold 303.8 billion won worth of shares.
Among the top KOSDAQ stocks by market capitalization, Silicon Two (up 19.31%), HPSP (up 14.70%), Genexine (up 9.78%), Samchundang Pharm (up 5.88%), Rigakem Bio (up 4.80%), Classys (up 4.51%), Kolon TissueGene (up 3.90%), Alteogen (up 3.82%), Lino Corporation (up 3.33%), Ecopro BM (up 2.93%), Hugel (up 1.79%), and HLB (up 1.33%) rose. On the other hand, JYP Ent. (down 4.05%) and SM Entertainment (down 0.92%) declined.
Researcher Kim commented, "With Tesla expected to unveil its robotaxi on June 12 local time, both the autonomous driving and secondary battery value chains saw simultaneous gains. The KOSDAQ index surged nearly 2%, led by strength in large-cap stocks such as pharmaceuticals and bio companies."
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