KOSPI turns higher despite foreign selloff of about KRW 5 trillion…sets new record

After the U.S. stock market fell overnight, led by weakness in tech shares, a chill also swept through the local market. Still, the KOSPI reversed course during the session to set a new all-time high. Foreign investors are net sellers of more than KRW 5 trillion, but retail investors are absorbing the supply.

According to the Korea Exchange, as of 2:31 p.m. today, the KOSPI is trading at 6,338.4, up 31.13 points (0.49%) from the previous day.

The index opened at 6,197.49, down 109.78 points (1.74%) from the previous session, and at one point slid to 6,153.87. It soon pared losses sharply and turned higher. It climbed as high as 6,344.49 during the session, once again setting a fresh record.

The KOSPI had surged 3.67% the previous day on the back of Nvidia’s strong earnings, breaking above the 6,300 mark for the first time. However, after U.S. equities weakened overnight—including a 1.18% drop in the Nasdaq Composite—the local market opened lower. It later successfully switched to gains as strong retail buying emerged intraday.

At present, retail and institutional investors are net buyers of KRW 4.5189 trillion and KRW 526.5 billion, respectively. Foreigners alone are net sellers by as much as KRW 5.2423 trillion.

Investor sentiment also appears to have been lifted by a Morgan Stanley report today raising its KOSPI target to 6,500. It comes about a month after the firm lifted its forecast to 5,200 on the 29th of last month. Morgan Stanley said that in a bull-market scenario, the index could rise as high as 7,500.

Market bellwether Samsung Electronics is up 1.61% at KRW 221,500. SK hynix is down 1.18% at KRW 1,086,000. Hyundai Motor is surging 10.51% after news that Hyundai Motor Group will invest KRW 9 trillion in the Saemangeum area of North Jeolla Province.

The KOSDAQ is trading at 1,198.61, up 10.46 points (0.88%). The index opened at 1,175.4, down 12.75 points (1.07%) from the previous day, but turned higher around noon.

Institutions and foreigners are net buyers by KRW 300.3 billion and KRW 15.2 billion, respectively. Retail investors alone are net sellers by KRW 283.2 billion.

On the KOSDAQ, EcoPro is up about 1%. Samchundang Pharm, which benefited from positive news of a mega contract worth up to KRW 5.3 trillion, is gaining in the 9% range. Aimed Bio is up more than 18% on news of its inclusion in major indices such as the KOSDAQ 150.

Reporter Shin Min-kyung, Hankyung.com radio@hankyung.com