KOSPI breaks through the 4650 level for the first time during the session due to individual buying... Foreign selling starts with a strong upward trend

Source: BlockMedia Original Title: [Market Opening] KOSPI, First Breakthrough of 4650 During Trading Hours Driven by Individual Buying…Foreign Selling Accelerates Original Link: KOSPI continued its upward trend for the 7th consecutive trading day, breaking through the 4650 mark for the first time during trading hours. However, the gains were somewhat reduced as foreign selling expanded.

As of 9:20 AM on the 12th, according to the Korea Exchange, the KOSPI index was up 35.63 points(0.73%) from the previous trading day, recording 4621.74. The KOSPI opened at 4639.89, up 53.57 points(1.17%) from the previous day(4586.32).

The KOSPI is showing strong early gains driven by individual investors. Individuals bought approximately 391.9 billion won, and institutions also supported the market with about 9.2 billion won. Meanwhile, foreigners sold about 414.3 billion won, taking profits.

Among the top 10 market cap stocks, semiconductors and automobiles are showing strength. Samsung Electronics started trading at 141,800 won, up 2.01%(2800 won) from the previous day, and SK Hynix also rose 16,000 won(2.15%) to 760,000 won, showing a combined strong performance. Samsung Electronics’ preferred stock also rose 1.55%, indicating expanding buying interest in preferred shares.

Samsung Biologics rose 0.64%, and LG Energy Solution increased 0.55%, showing a slight rebound. Hyundai Motor surged 4.51%, with a notable early rise. Hanwha Aerospace and SK Square also opened slightly higher, up 0.41% and 1.39%, respectively, starting in the strong positive zone. Doosan Enerbility rose over 5%, showing relatively strong momentum among energy stocks.

On the other hand, HD Hyundai Heavy Industries declined 1.81%, starting weaker among shipbuilding stocks. Overall, in the early trading phase, the KOSPI is being led higher by buying in large semiconductor stocks.

Han Ji-young, a researcher at Kiwoom Securities, said, “The key is how long the upward trend in KOSPI earnings estimates will continue after Samsung Electronics’ preliminary earnings announcement,” adding, “Since the beginning of the year, the KOSPI’s consensus for operating profit has been raised by over 10%.” She further noted, “This exceeds the index’s overall rise rate during the same period.”

Focus on Sector Rotation Amid Strength in Cyclical Stocks

By sector, cyclical industries such as transportation, automobiles, and machinery started strong. Air cargo transportation and logistics saw the largest increase, rising (+14.91%), followed by automobiles (+3.55%), electrical equipment (+3.44%), machinery (+3.28%), and electric utilities (+2.78%), indicating concentrated buying.

Conversely, consumer and biotech-related sectors showed weakness. Healthcare services (-1.41%), cosmetics (-1.63%), internet catalog retail (-2.03%), and biotechnology (-3.24%) declined at the start.

A researcher pointed out that whether sector rotation will ease is a key variable for future market trends. He explained, “Although the KOSPI surged over 8% in six trading days since the beginning of the year, the number of declining stocks was higher than rising stocks during this period, indicating that the rally was concentrated in a few sectors such as semiconductors, shipbuilding, defense, and automobiles.”

He added, “While the super cycle in semiconductors, global order momentum, and physical AI have created sector-specific rallies, there is also a possibility of a temporary pause, especially in the sectors that surged at the start of the year, during profit-taking and supply-demand adjustments.”

KOSDAQ Slightly Down…Large Stocks Mixed Despite Foreign Buying

At the same time, the KOSDAQ index is down 6.79 points(0.72%) to 954.55, compared to the previous trading day. It opened at 948.48, up 0.56 points(0.06%) from the previous day(947.92).

Foreign investors net bought 23.1 billion won in the KOSDAQ market, while individuals and institutions net sold 12 billion won and 4.9 billion won, respectively.

Top market cap stocks showed mixed movements. Alteogen fell 24,500 won(-4.79%) to 486,500 won, realizing profits. Meanwhile, large secondary battery stocks performed well. EcoPro BM rose 4,900 won(+3.45%) to 146,800 won, and EcoPro increased 4,500 won(+5.11%) to 92,500 won.

Biotech stocks showed mixed results. ABCL Bio traded at 202,000 won, down 1,200 won(-1.22%), and LIG Nex1 Bio fell 2,700 won(-1.49%) to 179,100 won. Conversely, HLB surged 3,200 won(+6.32%) to 53,800 won, showing strong momentum, and Samchundang Pharma rose 6,500 won(+2.64%) to 253,000 won.

Overall, large-cap stocks on the KOSDAQ are showing a differentiated trend, with strength in secondary batteries and some biotech stocks, amid profit-taking in biotech and robotics stocks.

In the Seoul foreign exchange market, the won-dollar exchange rate opened at 1,461.3 won, up 3.7 won from the previous trading day’s weekly closing price(1457.6 won).