Foreign investors dump over 7 trillion won on main board

A financial data screen in the Hana Bank dealing room in central Seoul shows the Kospi closing at a record high of 7,490.05, gaining 105.49 points, or 1.43 percent, from the previous session, Thursday. (Newsis)
A financial data screen in the Hana Bank dealing room in central Seoul shows the Kospi closing at a record high of 7,490.05, gaining 105.49 points, or 1.43 percent, from the previous session, Thursday. (Newsis)

South Korea's benchmark Kospi extended its gains Thursday, hurtling past the 7,500 mark during intraday trading and shrugging off foreign selling of over 7 trillion won ($4.8 billion) on the main board.

It closed at 7,490.05 points, up 1.43 percent from the previous close, renewing the closing high set just a day earlier at 7,384.56. During intraday trading, the index climbed as high as 7,531.88, well beyond the previous day’s intraday peak of 7,426.6.

The index opened at 7,499.07, before quickly breaking above the 7,500 threshold. After touching its intraday high, it swung between gains and losses for much of the session. However, in afternoon trading, the Kospi regained upward momentum and ultimately closed higher than the previous day.

Foreign investors, who had fueled the Kospi’s breakthrough rally Wednesday with 3.1 trillion won net purchasing a day earlier, turned into massive net sellers Thursday, offloading shares amounting to 7.15 trillion won.

The offshore net selling reached an all-time high. The previous record was set on Feb. 27, just before the outbreak of the Iran war, when they offloaded over 7.08 trillion won of shares.

Retail investors held the line by net buying shares to the tune of 5.99 trillion won, while institutional investors purchased 1.09 trillion won.

Shares of Samsung Electronics and SK hynix, the country’s two semiconductor heavyweights, both hit fresh highs of 277,000 won and 1,665,000 won per share, respectively, during trading.

Samsung Electronics closed at 271,500 won, climbing 2.07 percent, while SK hynix gained 0.75 percent to 1,654,000 won. SK Square, the largest stakeholder of SK hynix, rose 0.92 percent to 1,099,000 won, while Hyundai Motors rose 4 percent to 572,000 won.

The secondary Kosdaq wrapped up at 1,199.18, down 0.91 percent on-session.

Market analysts said the market was seeing sector rotation while its broader upward momentum remained intact.

“After the Kospi briefly topped the 7,500 mark in early trading, volatility widened as investors locked in profits mainly in artificial intelligence value-chain and defense stocks,” said Kang Jin-hyuk, an analyst at Shinhan Securities.

“The uptrend for Samsung Electronics and SK hynix is likely to remain intact as earnings estimates continue to move higher,” said Lee Jae-won, an analyst at Yuanta Securities.

Meanwhile, the Korean won was quoted at 1,448.6 per dollar at the opening of onshore trading, strengthening from the overnight close of 1,449.4 won, backed by improving global risk appetite amid growing expectations for a ceasefire agreement between the US and Iran.

It was the first time for the local currency to strengthen into the range of 1,440 to the dollar since Feb. 27.

During intraday trading, the currency briefly strengthened to 1,446.5 won per greenback. It, however, later partly pared the gains and closed at 1,454 won per dollar.


silverstar@heraldcorp.com