BUSINESS

Foreign buying on Kospi largest in over 4 years

By Son Ji-hyoung
  • Published : Oct 10, 2017 - 18:37
  • Updated : Oct 10, 2017 - 19:13
South Korea‘s main bourse saw the largest foreign net purchase of its stocks in over four years Tuesday, while the market index approached the record-high in its closing, overshadowing escalating verbal war threats between North Korea and the United States.

The Kospi closed at 2,433.81 Tuesday, the highest since July 27, when the index closed at 2,443.24.

Kospi went up 1.64 percent from the previous trading day on Sept. 29, the highest rise in five months since 2.3 percent surge on May 8. Stock markets in Korea have been dormant during 10-day holidays.

(Yonhap)
Offshore investors net bought stocks worth 817.5 billion won ($720 million). Individual investors and institutional investors net sold stocks worth 310.5 billion won and 561.6 billion won, respectively.

The daily foreign net purchase volume was the largest since Sept. 12, 2013, when the top-tier market saw 1.43 trillion won net purchase by foreigners.

The rally was mainly driven by tech juggernauts. Samsung Electronics jumped 2.96 percent, while SK hynix soared 7 percent. Out of top 30 Kospi stocks in market cap, 27 gained.

The market as a whole, however, did not benefit. Losers outnumbered gainers 450 to 364.

LG Electronics, despite posting 82.2 percent growth in operating profit in the third quarter on-year, dropped 1.94 percent. LG Display also fell 2.13 percent.

The geopolitical tension surrounding the Korean Peninsula was again heightened Tuesday as it marked the 72nd anniversary of Workers’ Party Foundation Day.

Local currency strengthened by 10.3 won against the dollar in the session’s close. Dollar was trading at 1,135.1 won.

By Son Ji-hyoung (consnow@heraldcorp.com)