[Closing Market] KOSPI Recovers Above 6,680 Amid Stronger Won
On Sept. 4, the domestic stock market closed strong across the board as simultaneous buying by foreign and institutional investors flowed in. This is the result of renewed expectations for the U.S. Federal Reserve’s interest rate freeze and cuts, along with the positive performance of tech stocks in
On September 4, the South Korean stock market, the KOSPI, closed at a high of 6,687.21 points, marking a 1.64% increase from the previous day. This surge was driven by significant buying from both foreign and institutional investors, buoyed by positive expectations surrounding the potential interest rate freeze and cuts by the U.S. Federal Reserve.
The KOSPI index began the day higher than the previous session, peaking at 6,746.14 before slightly retracting near the close to settle above 6,680. Meanwhile, the KOSDAQ index also experienced a notable rebound, closing at 813.50, marking its first upward trend in five days. The primary forces behind this upward trend were foreign and institutional investors.
On the Main Market (KOSPI), foreign investors turned net buyers focusing on semiconductors and large-cap tech stocks, while institutional investors expanded their buying, particularly in financial investments and investment trusts. Conversely, retail investors exhibited a selling pattern, profit-taking as the index approached the 6,680 mark.
Overall, foreign investors led the market with net purchases of 479.3 billion won, and institutional investors contributed 1.6691 trillion won. In the KOSDAQ, foreign and institutional investors jointly purchased shares worth approximately 262.3 billion won and 160.2 billion won, respectively, whereas individual investors offloaded shares with a net sale of around 411.9 billion won.
Among the top large-cap stocks by market capitalization, Samsung Electronics and SK hynix both saw gains, with Samsung Electronics closing at 255,500 won (up 2.20%) and SK hynix at 1,647,000 won (up 3.20%). This overall upward flow was fueled by foreign and institutional passive fund inflows and optimistic outlooks for the semiconductor industry.
The won-dollar exchange rate closed at 1,350.4 won, a decrease of 8.9 won from the previous day, marking the lowest level in about 14 months. This decline can be attributed to the global weak dollar trend and increased inflow of foreign funds into the domestic stock market. Market experts suggest that the preference for riskier assets in the domestic market has further improved, given the heightened visibility of U.S. macroeconomic indicators and interest rate policy direction.
Nonetheless, they caution that as profit-taking from the recent surge unfolds, attention should be given to the continued influx of foreign funds and the trajectory of the won-dollar exchange rate.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
