Simultaneous Buying by Foreign Investors and Institutions
Ahead of the holiday, the KOSPI index closed nearly 1% higher. The simultaneous buying by both foreign investors and institutions appears to have driven the index upward.
On October 1, the KOSPI finished regular trading at 3,455.83, up 0.91% from the previous day. After starting the session slightly higher at 3,444.06, the index maintained levels above 3,450 throughout the day.
The dual buying by foreign investors and institutions was significant. They recorded net purchases of 927.8 billion won and 289.2 billion won, respectively. Only retail investors were net sellers, with a net outflow of 1.2592 trillion won. Foreign investors continued their net buying streak for the third consecutive session.
Many sectors posted gains. The medical and precision instruments sector recorded the largest increase at 3.01%. The electrical and electronics sector followed with a 2.30% rise. Other sectors that gained more than 1% included machinery and equipment (1.82%), manufacturing (1.50%), general services (1.28%), and food, beverage, and tobacco (1.07%). In contrast, IT services (-1.45%), electricity and gas (-1.34%), and securities (-1.31%) declined.
Most of the top 10 stocks by market capitalization also rose. Doosan Enerbility (3.0%), SK Hynix (2.8%), Samsung Electronics (2.2%), and HD Hyundai Heavy Industries (1.9%) posted the largest gains. Only Hanwha Aerospace (-0.9%) and LG Energy Solution (-0.2%) declined.
The KOSDAQ also closed at 845.34, up 0.40% from the previous day. However, it ended slightly lower than its opening price of 846.32.
Unlike the KOSPI market, institutions were the sole net buyers on the KOSDAQ, with net purchases of 98.1 billion won. Foreign investors and retail investors were net sellers, with net outflows of 59.4 billion won and 28.1 billion won, respectively.
The proportion of rising and falling sectors was similar. Several sectors gained more than 1%, including non-metallics (1.94%), metals (1.29%), textiles and apparel (1.10%), machinery and equipment (1.28%), electrical and electronics (1.08%), chemicals (1.03%), and publishing and media replication (1.00%). On the other hand, telecommunications (-1.38%), finance (-1.19%), IT services (-0.87%), and pharmaceuticals (-0.61%) declined.
Most of the top 10 KOSDAQ stocks by market capitalization declined. Pharmaresearch posted the largest drop at -5.9%. Samchundang Pharm (-2.0%), Rainbow Robotics (-0.8%), Ecopro (-0.5%), and Peptron (-0.5%) also fell. However, LIG ChemBio (5.0%) and ABL Bio (2.4%) rose.
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