KOSPI Rises on Institutional Buying Despite Sharp Drop in U.S. Tech Stocks
Despite a sharp drop in U.S. tech stocks, the KOSPI rose as much as 1.3% intraday to 5,807. The KOSDAQ also advanced more than 1.2%, reaching 733. Late in the session, the KOSPI climbed to 5,875 and the KOSDAQ to 736, extending their gains.
Although the Philadelphia Semiconductor Index fell more than 7%, the number of advancing stocks increased in the domestic market. More than 600 stocks rose on the Korea Exchange, while the KOSDAQ recorded around 180 gainers. Foreign investors were net sellers of about 200 billion won on the exchange, but institutions supported the index with net purchases of approximately 800 billion won.
Financial investment firms and pension funds participated in institutional buying, while purchases by other corporations also stood out. One explanation was that SK hynix’s share buyback was reflected in flows from other corporations. The won-dollar exchange rate rose by about 9.50 won to exceed 1,343 won, making it important to monitor foreign investor flows alongside exchange-rate movements.
This week brings the U.S. midterm elections, employment data and earnings announcements from major technology companies. Results are due from Apple, Palantir, AMD and Qualcomm, as well as the U.S. Job Openings and Labor Turnover Survey and the October Employment Situation report. In Korea, earnings announcements are concentrated among POSCO Group, EcoPro Group, and companies in the secondary-battery, cosmetics, gaming, telecommunications and entertainment sectors.