KOSPI Closes Above 4,100 Mark as Institutional and Foreign Investors Net Buy 2 Trillion Won [fn Closing Market]

[Financial News] On the 5th, the Korea Composite Stock Price Index (KOSPI) closed above the 4,100 mark, buoyed by buying from institutional and foreign investors.
The KOSPI ended the session at 4,100.05, up 71.54 points (1.78%) from the previous trading day. The index opened at 4,023.50, down 5.01 points (0.12%), but soon reversed course and climbed higher.
In the KOSPI Market, institutional investors and foreign investors net purchased 1.1533 trillion won and 990.9 billion won, respectively, totaling approximately 2.1442 trillion won. In contrast, individual investors recorded a net sell of 2.1137 trillion won.
Most sectors finished higher. Construction (6.04%), transportation equipment and parts (4.29%), non-metallics (2.84%), electricity and gas (2.76%), metals (2.53%), electrical and electronics (2.33%), and manufacturing (2.15%) all posted gains. On the other hand, pharmaceuticals (-1.28%), entertainment and culture (-1.21%), textiles and apparel (-1.15%), and food, beverages, and tobacco (-0.26%) declined.
Most large-cap stocks also showed upward momentum. Samsung Electronics (2.76%), SK hynix (0.18%), LG Energy Solution (3.54%), Hyundai Motor (10.93%), Doosan Enerbility (1.64%), KB Financial Group (1.09%), and Kia Corporation (2.41%) all gained. Samsung Biologics (-2.20%) ended lower.
The return of foreign investors, who had been net sellers last month, played a key role. Ahead of the Federal Open Market Committee (FOMC) meeting in the United States on the 9th and 10th (local time), expectations for a rate cut have grown, improving investor sentiment.
The securities industry is also focusing on the upcoming earnings announcement from Broadcom, a U.S.-based application-specific integrated circuit (ASIC) design company, scheduled for the 11th (local time). This is due to lingering concerns in the market about a potential artificial intelligence (AI) bubble.
Lee Jae-won, a researcher at Shinhan Securities, stated, "It remains to be seen whether the return of foreign capital will continue. Next week, both Broadcom’s earnings and the FOMC meeting are scheduled. Since a rate cut is already widely anticipated, the dot plot to be released will be of greater significance."
On the same day, the Korea Securities Dealers Automated Quotations (KOSDAQ) closed at 924.74, down 5.09 points (0.55%) from the previous session. The index opened at 930.75, up 0.92 points (0.10%) from the previous close.
In the KOSDAQ market, individual investors bought 319.9 billion won worth of shares. Institutional investors and foreign investors net sold 186.4 billion won and 130.3 billion won, respectively.

yimsh0214@fnnews.com Im Sang-hyuk Reporter