KOSPI opens lower, retreats to the 6,200 level… foreigners ‘net sellers’ vs. individuals ‘net buyers’
Summary
- The KOSPI retreated to the 6,200 level, but downside support is being provided as individuals and institutions remain net buyers.
- Researcher Han Ji-young forecast heightened volatility in the local stock market following the sharp drop in Nvidia shares, but said she maintains the view that continuing to hold stocks is an appropriate strategy at current levels.
- In the KOSDAQ market, Samchundang Pharm is extending gains for a second day on news of an obesity-treatment technology transfer, while Aimed Bio is surging on its inclusion in the KOSDAQ 150 index.
Forecast Trend Report by Period
The KOSPI opened lower and retreated to the 6,200 level. Foreigners are net selling more than 1 trillion won, but individuals are buying roughly the same amount, providing support on the downside.
According to the Korea Exchange, as of 9:24 a.m. on the 27th, the KOSPI was trading at 6,246.67, down 64.6 points (1.02%) from the previous session. The index opened at 6,197.49, down 109.78 points (1.74%) from the previous day.
Foreigners were net sellers of 1.9350 trillion won. Individuals and institutions were net buyers of 1.5937 trillion won and 301.6 billion won, respectively.
The KOSPI had surged 3.67% in the previous session on the back of Nvidia’s strong earnings, briefly breaking above 6,300 for the first time on record, but turned lower on the day.
Han Ji-young, a researcher at Kiwoom Securities, said, “In the wake of Nvidia’s sharp share-price drop overnight, semiconductor names such as Micron have weakened, and the local market is also likely to see significant intraday volatility.”
However, she added, “We need to consider the steady inflows of retail funds, the valuation with a price-to-earnings ratio (PER) in the low teens despite the sharp run-up, and the KOSPI’s operating profit that has been revised up to the 600-trillion-won range,” noting, “It may feel uneasy, but we maintain the view that a strategy of continuing to hold equities is appropriate even at current levels.”
In the main bourse, Samsung Electronics and Hyundai Motor were slightly higher. SK Hynix was down about 1%. Doosan Enerbility was up about 4%, while Hyundai Mobis was down about 4%.
The KOSDAQ was edging higher. It was trading at 1,191.907, up 2.92 points (0.25%) from the previous day. The index opened at 1,175.4, down 12.75 points (1.07%) from the previous session, but has shown no clear direction.
Market heavyweights EcoPro and EcoPro BM were trading unchanged from the previous day. Samchundang Pharm is up nearly 11% after news of a 530.00 billion won technology transfer deal for an oral obesity treatment, following the previous day’s limit-up. Aimed Bio is also rising 14.8% on the back of its newly added inclusion in the KOSDAQ 150 index.
Shin Min-kyung, Hankyung.com reporter radio@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
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