KOSPI Rises Above 4,060 on Institutional and Foreign Buying [fn Morning Market Report]

[Financial News] The Korea Composite Stock Price Index (KOSPI) climbed above the 4,060 mark on the 5th, buoyed by net purchases from institutional and foreign investors.
As of 10:40 a.m., the KOSPI was trading at 4,060.05, up 31.54 points (0.78%) from the previous session. The index opened at 4,023.50, down 5.01 points (0.12%) from the previous close, but soon reversed course and moved higher.
In the KOSPI Market, institutions and foreigners have made net purchases of 331.2 billion won and 177.2 billion won, respectively. Meanwhile, individual investors have sold off 464.2 billion won worth of shares.
By sector, construction (3.26%), transportation equipment and parts (1.88%), electricity and gas (1.47%), non-metallic minerals (1.31%), and electrical and electronic (1.04%) are showing strength. In contrast, textiles and apparel (-1.30%), pharmaceuticals (-1.23%), and entertainment and culture (-1.09%) are underperforming.
Among the top market cap stocks, Samsung Electronics (2.00%), LG Energy Solution (3.05%), Hyundai Motor (6.70%), Doosan Enerbility (0.69%), KB Financial Group (0.23%), and Kia (1.16%) are all trading higher. On the other hand, SK hynix (-1.11%), Samsung Biologics (-1.73%), and HD Hyundai Heavy Industries (-0.95%) are trading lower.
The domestic stock market appears to be in a wait-and-see mode ahead of next week's Federal Open Market Committee (FOMC) meeting in the United States. The Federal Reserve System (Fed) is scheduled to hold the FOMC on the 9th and 10th (local time) to decide whether to cut its benchmark interest rate.
Recently, the domestic market has seen rotational buying centered on stocks expected to benefit from rate cuts and previous market leaders. Additionally, with the recent passage of the separate taxation bill for dividend income by the National Assembly, there is growing interest in high-dividend and shareholder return stocks.
Sunghoon Lee, a researcher at KIWOOM Securities, stated, "Today, the domestic market is expected to see a rotation among various themes. Recently, rapid sector rotation has been observed in semiconductors, defense, power infrastructure, high-dividend and shareholder return stocks, as well as in narrative growth stocks such as bio and robotics, all of which have been previous market leaders or are expected to benefit from rate cuts."

yimsh0214@fnnews.com Im Sang-hyuk Reporter