KOSPI Jumps 3% to the 5,700 Level on Institutional Buying, Boosted by Oracle’s Strong Earnings

[The Financial News] The KOSPI is climbing on the back of strong institutional buying. Market watchers say the upbeat mood in domestic tech stocks reflects robust earnings from U.S. software company Oracle Corporation, which beat market consensus.
As of 10:20 a.m. on the 11th, the KOSPI was trading at 5,709.52, up 176.93 points (3.20%) from the previous session. Earlier in the day, it opened at 5,658.72, a gain of 126.13 points (2.28%) from the prior close.
In the Stock Market Division of the Korea Exchange, institutions alone are net buyers of 551.8 billion won. In contrast, retail investors and foreigners are net sellers of 310.3 billion won and 216.9 billion won, respectively.
Most large-cap stocks by market capitalization are advancing. Samsung Electronics is up 2.45%, SK hynix 3.30%, Hyundai Motor Company 3.24%, LG Energy Solution 1.91%, SK Square 5.42%, and Samsung Biologics 4.02%, all showing strong gains.
By sector, securities are up 10.75%, financials 5.35%, insurance 4.55%, retail 4.54%, electricity and gas 3.45%, non-metallic minerals 3.42%, and pharmaceuticals 3.33%.
Overnight strength in technology stocks on the New York Stock Exchange (NYSE) has created a favorable backdrop for the Korean market. On the 10th (local time), Oracle Corporation reported revenue of $17.19 billion for its fiscal third and fourth quarters combined (from December last year to February this year), up 22% year-on-year and above market consensus. Following the earnings release, Oracle’s share price surged as much as 8% in after-hours trading. U.S. chipmakers such as Micron Technology and SanDisk also posted gains of 3.5% and 5.1%, respectively.
Han Ji-young, a researcher at KIWOOM Securities, noted, "Although the U.S. stock market was mixed due to noise related to the Strait of Hormuz, stocks such as Micron and SanDisk showed strength." Han added, "Given that Oracle was also strong in after-hours trading, a foreign investor–driven, favorable supply-and-demand environment is likely to form for semiconductor stocks in the domestic market as well."
At the same time, the KOSDAQ was trading at 1,161.92, up 24.24 points (2.13%) from the previous session. The index had opened at 1,096.48, down 58.19 points (5.04%) from the prior close.
On the KOSDAQ, institutions and retail investors are net buyers of 93.8 billion won and 7.9 billion won, respectively. Foreign investors, on the other hand, are net sellers of 78.1 billion won.

yimsh0214@fnnews.com Im Sang-hyuk Reporter