The KOSPI index closed higher at the 5,350 level on the back of foreign buying. Foreign investors, who led the KOSPI's decline by selling 11 trillion won on Feb. 2–6, have turned net buyers for three straight days this week. On the day, foreign investors net bought nearly 850 billion won, driving the index higher, while individuals took profits of 1.7 trillion won.
The KOSPI ended at 5,347.16, up 45.47 points, or 0.86%, from the previous session. The index opened slightly lower at 5,293.75 from the prior session but turned higher on institutional buying during the session and topped the 5,340 level. Starting at 1:08 p.m., foreign investors shifted to net buying, widening the index's gains.
There was pronounced rotation among investor groups on the KOSPI market on the day. Early in the session, individuals net bought more than 200 billion won to lift the index, but they turned to net selling of 1.7124 trillion won before the close. In the afternoon, institutions led the index higher, and late in the session, foreign investors net bought 847.3 billion won, further boosting the index.
Lim Jeong-eun, a KB Securities researcher, said, "With foreign investors net buying KOSPI stocks for three straight trading days, last week's heavy selling pressure appears to be easing," adding, "We judge that some profit-taking and portfolio rebalancing trades occurred in parallel." Foreign investors net bought 1.5 trillion won of KOSPI stocks this week (Feb. 9–11).
Amid a surge in LG Electronics and LG CNS (4.49%) on expectations for new businesses such as humanoids based on the artificial intelligence (AI) model Exaone, semiconductor stocks were mixed. Samsung Electronics (1.21%) and Samsung Electronics preferred (1.57%) rose, while SK hynix (1.83%) and SK Square (2.03%) closed lower.
Financials were also strong on top of a record-earnings rally and heightened expectations for shareholder returns. KB Financial (5.79%), Hana Financial Group (2.95%), Woori Financial Group (6.32%), and Meritz Financial Group (7.45%) were strong. However, Mirae Asset Securities (1.16%), which was the subject of a brokerage report calling for stronger shareholder returns on the day, closed lower.
The KOSDAQ index closed at 1,114.86, down 0.34 points, or 0.03%, from the previous session. The index opened at 1,120.62 and extended gains during the session on foreign buying, but it finished lower as individuals sold 48.3 billion won, the National Pension Service 26 billion won, and insurers 6.7 billion won.
Top KOSDAQ stocks were mixed. On news that AprilBio succeeded in a phase 2 clinical trial for an atopic dermatitis treatment, the stock hit the upper limit and biotech names inched higher at the close. Alteogen (1.85%), ABL Bio (0.65%), HLB (0.58%), and LigaChem Biosciences (0.95%) were among them.