KOSPI Rises on Strong Foreign and Institutional Buying... Record-Breaking Export Data Brightens Outlook [fn Afternoon Market Report]

[Financial News] While the Federal government of the United States entered a shutdown at 12:01 a.m. (local time) on the 1st, the Korea Composite Stock Price Index (KOSPI) is trending upward, buoyed by robust export performance. As of 1:35 p.m. on the 1st, KOSPI was trading at 3,451.51, up 26.91 points (0.79%) from the previous session. The index opened at 3,444.06, a 0.57% increase from the previous close.
In the main stock market, individual investors are realizing profits by selling 820.4 billion won worth of shares. In contrast, foreign investors and institutions are buying 565.4 billion won and 248.1 billion won worth of stocks, respectively, driving the index higher.
By sector, medical and precision instruments (up 2.47%), electrical and electronics (up 2.24%), machinery and equipment (up 1.58%), and general services (up 1.45%) are showing gains. Meanwhile, securities (down 1.49%), IT services (down 1.32%), utilities (down 1.29%), and insurance (down 0.72%) are underperforming.
Among large-cap stocks, Samsung Electronics (up 2.38%), SK hynix (up 3.31%), LG Energy Solution (up 0.14%), and Samsung Biologics (up 0.4%) are performing strongly. On the other hand, Hanwha Aerospace (down 1.17%) and Naver Corporation (down 4.66%) are declining.
Amid fierce confrontation in the US Congress over the federal budget, a partial shutdown of the Federal government of the United States began at 12:01 a.m. on the 1st (1:01 p.m. KST). Despite concerns over the shutdown, US stock markets closed higher overnight, led by gains in artificial intelligence (AI) stocks such as Nvidia on expectations of data center expansion. Market analysts believe the likelihood of a prolonged shutdown is low and that the impact on the domestic stock market will be limited.
Jae-won Lee, a researcher at Shinhan Securities, stated, "Korea's exports in September reached $65.95 billion, marking the highest figure in three and a half years since March 2022. While concerns over a US government shutdown persist, past experience suggests the impact is minimal, and the overall trend remains unchanged, with performance-driven sectors leading the market. Investors should focus on sectors with strong earnings and export performance, such as industrials and IT, where earnings estimates are being revised upward."
At the same time, the Korean Securities Dealers Automated Quotations (KOSDAQ) index was trading at 845.95, up 3.96 points (0.47%) from the previous session. The index opened at 846.32, a 0.51% increase from the previous close.
Individuals and institutions are net buyers of 3.7 billion won and 74.8 billion won, respectively, while foreign investors are showing a net selling position of 62.4 billion won.

nodelay@fnnews.com Ji-yeon Park Reporter