It took only a day after the KOSPI climbed to the "7000-peak" for it to break its all-time record again. On the 7th, the KOSPI closed at 7,490.05, up 105.49 points (1.43%) from the previous session, extending its unbridled rally. Foreign investors unloaded more than 7.1 trillion won in profit-taking, pressuring the index, but individuals and institutions absorbed all of it, driving the gains.
The KOSPI opened at 7,499.07, up 114.51 points (1.55%) from the day before, then briefly turned lower in morning trading and slipped to the 7,200 level. Heavy foreign selling was a key factor.
Foreign investors were net sellers of more than 7 trillion won on the day. Lee Kyung-min, a researcher at Daishin Securities, said, "This is the second-largest amount since a sell-sidecar was triggered on Mar. 23 due to concerns over U.S.-Iran tensions, high oil prices, and uncertainty sparked by Donald Trump."
Individuals and institutions, by contrast, took in the supply. Individuals were net buyers of nearly 6 trillion won, and institutions also bought more than 1 trillion won on the main board.
The researcher said, "As the KOSPI surged, profit-taking emerged mainly among foreign investors," adding, "After a steep two-session climb, the domestic market showed signs of the rally cooling."
Some also noted that hopes the U.S. and Iran are nearing a cease-fire deal spurred a sector rotation.
Construction stocks were strong on the day on momentum from a potential cease-fire and infrastructure rebuilding. Samsung E&A rose 21.51%, and GS Engineering & Construction and DL E&C also finished higher.
Hyundai Motor Group shares also climbed across the board after Boston Dynamics released operating footage of its humanoid Atlas. Hyundai Motor, as well as Kia, Hyundai AutoEver, Hyundai Glovis, and Hyundai Mobis, all closed higher.
Samsung Electronics and SK hynix, which had surged and led the main board, also managed to close up in the 2% and 3% ranges, respectively.
Meanwhile, the KOSDAQ was sluggish again. The KOSDAQ fell 10.99 points (0.91%) to 1,199.18 at the close.
On the KOSDAQ, foreign investors turned buyers. Foreign investors were net buyers of 169.4 billion won, while individuals and institutions were net sellers of 12.4 billion won and 134.9 billion won, respectively.
Kang Jin-hyeok, a researcher at Shinhan Investment & Securities, said, "Despite strength in biotech and optical communication stocks, most sectors were weak, and the market continued to fluctuate around the flat line."