KOSPI Rises Nearly 1% on Joint Buying by Foreign and Institutional Investors [fn Closing Market Report]

[Financial News] The Korea Composite Stock Price Index (KOSPI) closed nearly 1% higher, buoyed by strong buying from both foreign and institutional investors despite the Federal government of the United States shutdown. According to the Korea Exchange (KRX) on the 1st, the KOSPI finished at 3,455.83, up 31.23 points (0.91%) from the previous trading day. The index opened at 3,444.06, a 0.57% increase from the previous session.
In the main stock market, foreign investors and institutions recorded net purchases of 916.3 billion won and 289.9 billion won, respectively. Individual investors sold 1.26 trillion won worth of shares in a move to realize profits.
By sector, medical and precision instruments (up 3.01%), electrical and electronics (up 2.30%), machinery and equipment (up 1.82%), and manufacturing (up 1.50%) closed strong. In contrast, IT services (down 1.45%), electricity and gas (down 1.34%), and securities (down 1.31%) ended weaker.
Among the top market cap stocks, Samsung Electronics (up 2.38%), SK hynix (up 3.60%), LG Energy Solution (up 0.43%), and Samsung Biologics (up 0.50%) all gained, while Hanwha Aerospace (down 1.36%) and Naver Corporation (down 4.28%) declined.
Amid fierce confrontation in the U.S. Congress over the 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). However, despite concerns over the shutdown, the U.S. stock market closed higher overnight as expectations for data center expansion boosted artificial intelligence (AI) stocks such as Nvidia. Market analysts believe the likelihood of a prolonged shutdown is low and expect the actual impact on the domestic stock market to be limited.
Lee Jae-won, a researcher at Shinhan Securities, stated, "Korea's exports in September reached $65.95 billion, marking the highest level in three and a half years since March 2022. While concerns over a U.S. government shutdown remain, past experience suggests the impact is minimal, and the overall trend of earnings-driven markets is unchanged. Attention should be paid to sectors with strong earnings and export performances, such as industrials and IT, where profit estimates are being revised upward."
On this day, the Korean Securities Dealers Automated Quotations (KOSDAQ) index opened at 845.34, up 3.35 points (0.40%) from the previous session. The index started the day at 846.32, a 0.51% increase from the previous close.
Individual and foreign investors recorded net sales of 2.8 billion won and 60.4 billion won, respectively, while institutions posted net purchases of 98 billion won.

nodelay@fnnews.com Park Ji-yeon Reporter