Foreign Investors Turn Net Buyers After Six Sessions... Korean Stock Market Rebounds Around 1%

Foreign Investors Return to Net Buying After a Week
KOSPI Rebounds 0.94%, KOSDAQ Surges Over 1%

Both the KOSPI and KOSDAQ indices rebounded by around 1%. This is believed to be due to foreign investors shifting from five consecutive trading days of net selling to net buying.

On September 2, the KOSPI closed at 3,172.35, up 0.94% from the previous day. After starting slightly higher at 3,155.35, the index expanded its gains and moved into the 3,170 range.

The net buying by foreign investors appears to have driven the index upward. On this day, foreign investors recorded a net purchase of 438.2 billion won. After five straight trading days of net selling since August 27, they switched to net buying. In contrast, individual investors and institutions net sold 409.2 billion won and 127.2 billion won, respectively.

The KOSDAQ closed at 794.00, up 1.15% from the previous day. Although it briefly fell to the 785 range after a slightly higher open, it rebounded and settled in the 790 range.

The majority of sectors rose. The insurance sector led the gains, rising 2.87%. This was followed by electrical and electronics (1.73%), transportation equipment and parts (1.67%), machinery and equipment (1.29%), and manufacturing (1.28%). On the other hand, telecommunications (-1.73%), entertainment and culture (-1.11%), and securities (-0.59%) declined.

Almost all of the top 10 stocks by market capitalization increased. Many stocks rose by more than 1%, including Samsung Electronics (2.2%), Hanwha Aerospace (1.9%), SK Hynix (1.5%), and KB Financial Group (1.4%). Only Hyundai Motor closed unchanged from the previous day at 220,500 won.

Again, net buying by foreign investors was a key factor. After four consecutive trading days of net selling, they turned to net buying with 73.4 billion won on this day. Institutions also net bought 24.8 billion won, while individuals net sold 87.2 billion won.

More sectors also rose in the KOSDAQ market. Many sectors gained more than 1%, including transportation and warehousing (4.51%), general services (3.09%), pharmaceuticals (1.90%), machinery and equipment (1.71%), metals (1.15%), and IT services (1.08%). However, publishing and media replication (-1.22%), entertainment and culture (-0.86%), and construction (-0.68%) declined.

Most of the top 10 stocks by market capitalization also rose. The order of gains was LIG Chem Bio (4.7%), Samchundang Pharm (3.6%), Peptron (3.3%), Rainbow Robotics (3.1%), ABL Bio (2.7%), HLB (2.2%), Alteogen (1.6%), and Ecopro (0.6%). Only Pharmaresearch (-0.6%) and Ecopro BM (-0.1%) declined.