The KOSPI index reached the 3000 level for the first time in 3 years and 6 months since December 2021. The market capitalization of the KOSPI market also hit a record high of 2472 trillion won.
The supplementary budget proposed by the Lee Jae-myung government boosted expectations for economic recovery, and the influx of foreign investors and institutions stepping in to buy was seen as driving the rise in the index.
The KOSPI index closed at 3021.84. It increased by 44.10 points (1.48%) compared to the previous day, surpassing the 3000 mark. The Korea Exchange analyzed that with the new government in place, political uncertainty has eased and expectations for market stimulus measures have improved investor sentiment.
Foreign investors and institutions bought a total of 330 billion won and 150 billion won, respectively, pushing the index higher. Meanwhile, individuals who aimed to realize profits showed a selling advantage with 480 billion won.
It's not just today. Since the beginning of the year, institutions have shown a buying advantage of 6.5 trillion won in the KOSPI market. Foreign investors have also continued to make net purchases since last month. This year, the ratio of transactions is recorded as 48.7% for individuals, 31.8% for foreign investors, and 18% for institutions, which shows a contrast to 2021 when individuals made up 69% of the market while foreign and institutional investors accounted for only 14% and 15.9%, respectively.
The Lee Jae-myung government confirmed a supplementary budget amounting to 30.5 trillion won the day before. The supplementary budget includes plans to provide 'living recovery consumption coupons' (living recovery support funds) to all citizens, ranging from 150,000 won to 500,000 won, increasing expectations for economic stimulus.
Such expectations have heated up the top 10 stocks in the KOSPI market. Stocks of Samsung Electronics, SK hynix, Samsung Biologics, LG Energy Solution, Hanwha Aerospace, and Hyundai Motor Company all rose.
Expectations for the living recovery support fund leading to recovery in domestic consumption have also led to rising stock prices in related sectors. The stocks of Hyundai Department Store, CJ CGV, SAMG Entertainment, and Emart all closed higher.
On the other hand, stocks such as Doosan Enerbility and Hyundai E&C, which had recently recorded sharp increases, closed lower. Additionally, Hanwha System and HD Korea Shipbuilding & Offshore Engineering in the defense and shipbuilding sectors also experienced slight declines, reflecting profit realization during sector rotation.
Lee Kyung-min, a researcher at DAISHIN SECURITIES, explained, 'Currently, the upward trend is a rally based not on performance but on improved investor sentiment, so the KOSPI index may take a breather near the resistance level of 3000.'
On this day, the KOSDAQ index closed at 791.53, up 9.02 points (1.15%) compared to the previous trading day. In the KOSDAQ market, the net buying trend of foreign investors and institutions was remarkable, with net purchases of 27 billion won and 42.5 billion won, respectively. Meanwhile, individuals showed a selling advantage of 67 billion won.
The top stocks by market capitalization in the KOSDAQ showed mixed performance, but all six top stocks closed higher. Stocks of Alteogen, Rainbow Robotics, and others rose. With the upcoming launch of Tesla's RoboTaxi on the 22nd, battery manufacturers Ecopro and ECOPRO BM recorded stock price increases of over 12% and 7%, respectively.
On this day, as of the market closing time, the exchange rate of the Korean won against the U.S. dollar (won-dollar exchange rate) fell by 14.6 won to 1365.6 won compared to the previous day.