Foreign investors' 3 trillion won buying spree brings KOSPI close to 7,000; KOSDAQ closes higher thanks to retail investors [fn market close]

[Financial News] The KOSPI climbed to the brink of 7,000 points on foreign investors' net buying of more than 3 trillion won. The KOSDAQ briefly fell during the session, but it managed to finish higher thanks to buying from individual investors.
According to the Korea Exchange on the 14th, the KOSPI closed at 6,977.94, up 164.60 points, or 2.42 percent, from the previous session. It opened at 6,995.67, up 182.33 points, or 2.68 percent, and at one point rose as much as 2.90 percent to 7,010.86 before giving back some of its gains.
In the main board market, foreigners bought a net 303.75 billion won. It was the first time in 10 trading days, since the 31st of last month, that foreigners had posted net buying of more than 300 billion won in the main board market. By contrast, individuals and institutions sold a net 1.9792 trillion won and 1.0314 trillion won, respectively.
Among the large-cap stocks, Samsung Electronics, SK hynix, SK Square, Samsung Electro-Mechanics, Hyundai Motor Company, LG Energy Solution, and Samsung Life Insurance all rose. Samsung Biologics and Hanwha Aerospace ended lower.
By sector, telecommunications led the gains, followed by transportation equipment and parts, insurance, food and tobacco, electrical and electronics, and manufacturing. Pharmaceuticals, metals, and medical and precision instruments fell.
The United States' July Producer Price Index (PPI), released on the 13th local time, came in flat at 0.0 percent month on month, missing the market consensus of a 0.2 percent increase. That strengthened expectations that the base rate will be left unchanged, and sentiment appears to have improved, especially among foreign investors.
Kang Jin-hyuk, a researcher at Shinhan Investment & Securities, said, "Following the recent slowdown in July Consumer Price Index (CPI) growth, the PPI also came in below expectations, which has raised hopes that the base rate will be frozen next month." He added, "Foreign investors have continued net buying for four straight days."
The KOSDAQ closed at 864.65, up 3.28 points, or 0.38 percent, from the previous session. It opened at 868.07, up 6.70 points, or 0.78 percent, then turned lower during the session, but recovered to finish in positive territory just before the close.
On the KOSDAQ, individual investors alone bought a net 315.3 billion won, driving the index higher. Institutions and foreigners, meanwhile, sold a net 253 billion won and 65.7 billion won, respectively.

[email protected] Lim Sang-hyuk Reporter