As foreign investors and institutions have begun to buy, both the KOSPI and KOSDAQ indices continue their bullish trend during the morning session on the 5th.
The KOSPI index recorded 3198.12 at 11:04 a.m. on the 5th, up 50.37 points (1.6%) from the previous day. Institutions and foreigners showed a buying advantage of 104.7 billion won and 98.6 billion won, respectively, lifting the index. Individuals are net selling 232.6 billion won.
The KOSPI index briefly surpassed the 3200 mark early in the session, but it has fallen below 3200 again as the gain of Samsung Electronics, the top company by market capitalization, has diminished. However, all top 10 companies by market capitalization, including SK hynix, LG Energy Solution, and Samsung Biologics, are experiencing an upward trend in stock prices.
At the same time, the KOSDAQ index showed an increase of 16.69 points (2.13%), reaching 800.75. It recovered the 800 mark after three trading days.
In the KOSDAQ market, foreigners and institutions are net buying 60.6 billion won and 20 billion won, respectively. Individuals are in a selling position with 75.5 billion won.
The bio and secondary battery sectors, which have a large market capitalization share in the KOSDAQ market, are showing strength, buoyed by performance exceeding market expectations, thereby driving the index.
Stocks of companies such as Alteogen, ECOPRO BM, Ecopro, PharmaResearch, Rainbow Robotics, and LigaChem Biosciences have shown remarkable increases.
U.S. stock markets shook off the shock of employment indicators in just one day, and as expectations grew for interest rate cuts by the Federal Reserve, the appetite for risk assets revived.
The government's decision, along with the ruling Democratic Party of Korea, to review the tax reform plan that had shaken the Korean stock market from square one also acted as positive news. The first tax reform proposal of the Lee Jae-myung government included strengthening the capital gains tax criteria for major shareholders and separating taxation on dividend income, which fell short of market expectations. This tax reform proposal faced criticism for being inconsistent with promises to revitalize the stock market domestically and internationally.