KOSPI Rises on Foreign and Institutional Buying, KOSDAQ Turns Lower

On July 23, the KOSPI, which had closed lower the previous day, is showing signs of recovery. This is due to a shift to net buying by foreign investors and institutions.

As of 9:20 a.m. on this day, the KOSPI was trading at 3,174.51, up 0.14% from the previous trading day. Individuals recorded a net sell of 118.4 billion won, while foreigners and institutions were net buyers of 3.7 billion won and 106.2 billion won, respectively.

On the morning of the 22nd, the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. Photo by Yonhap News

Among large-cap stocks, all are rising except for SK Hynix (-0.93%) and Samsung Electronics Preferred (-0.18%). Samsung Electronics (0.30%), LG Energy Solution (0.60%), Samsung Biologics (2.50%), Hanwha Aerospace (0.11%), KB Financial Group (2.09%), Hyundai Motor (4.36%), Doosan Enerbility (1.60%), and Celltrion (0.50%) are all advancing.

The KOSPI is maintaining a strong upward trend in early trading, having rebounded after closing down more than 1% the previous day.

Han Ji-young, a researcher at Kiwoom Securities, said, "Since last week, the KOSPI has repeatedly touched the 3,200 level but has not been able to settle firmly at that level. The rapid surge and high levels seen in June continue to exert pressure, and growing caution over second-quarter earnings seasons in both Korea and the United States is creating a restrictive market environment."

She added, "Since June, domestic policy momentum and leading sector profit momentum in shipbuilding and defense have not been damaged. Therefore, the probability of a sharp market downturn or a significant drop in the index level is considered low. With the second-quarter results of the Magnificent 7 in the United States and Korea's major sectors scheduled from the latter half of this week through next week, this is a time when it is more appropriate to adopt a strategy of buying on dips in a phased manner rather than chasing rebounds."

The KOSDAQ, which started with a strong tone, is now declining. On this day, the KOSDAQ is trading at 808.08, down 0.60% from the previous trading day. Individuals are net buyers of 127.9 billion won, while foreigners and institutions are net sellers of 73.7 billion won and 47.2 billion won, respectively. The KOSDAQ opened at 815.88, up 2.91 points (0.36%) from the previous trading day.

Among the top KOSDAQ stocks by market capitalization, Alteogen (1.05%), EcoPro BM (1.19%), HLB (0.40%), EcoPro (1.15%), PharmaResearch (1.22%), LIG ChemBio (2.29%), Hugel (0.86%), and Samchundang Pharm (6.32%) are on the rise. Peptron (-2.01%) and Rainbow Robotics (-0.56%) are declining.

The exchange rate is weakening for the second consecutive day. On this day, the won-dollar exchange rate opened at 1,381.1 won in the Seoul foreign exchange market, down 6.7 won from the previous day.