[Korean Stock Market Closing] Korea Composite Stock Price Index closes higher for the 4th consecutive day… Foreign investors net buy 1.2 trillion KRW, semiconductor and transportation equipment stocks perform strongly

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According to a brief report from a Korean exchange on the 7th, the Korea Composite Stock Price Index (KOSPI) rose for the fourth consecutive trading day, closing at 4,551.06 points. Thanks to the optimistic sentiment about the growth of the AI industry from the previous day that boosted overseas stock markets, the Korean stock market opened higher. During the trading session, influenced by factors such as China-Japan trade friction and profit-taking sell-offs, Asian stock markets generally declined, but the index ultimately closed higher due to foreign buying mainly in semiconductor and transportation equipment stocks.

By industry, transportation and warehousing (+4.3%), transportation equipment and parts (+4.0%), circulation (+1.3%), and electrical electronics (+1.2%) performed strongly. Large-cap stocks rose by 0.7%, while mid-cap and small-cap stocks fell by 0.7% respectively. By investor type, foreigners net bought 1.2518 trillion KRW, while institutions and retail investors net sold 939 billion KRW and 294.6 billion KRW respectively.

The Korea KOSDAQ Index (KOSDAQ) declined for the second consecutive trading day, closing at 947.39 points. The previous day, it opened higher driven by the strong performance of the Nasdaq market, but turned lower in the morning due to sell-offs in machinery and electrical electronics stocks. By industry, construction (-2.4%), IT services (-2.3%), machinery and equipment (-2.0%) performed poorly. By investor type, retail investors net bought 312.9 billion KRW, while foreigners and institutions net sold 192.7 billion KRW and 101.6 billion KRW respectively.

On the other hand, the Korean won against the US dollar turned strong after five consecutive trading days, closing at 1446.1 KRW; international oil prices (WTI) declined for the second consecutive day, trading at $56.32 per barrel. In overseas stock markets, the US Dow Jones Industrial Average and Nasdaq rose by 1.0% and 0.7% respectively, while Japan’s Nikkei Index fell by 1.1%, and Hong Kong’s Hang Seng Index fell by 1.2%.

In program trading, net selling of arbitrage trades amounted to 225.0 billion KRW, while non-arbitrage trades net bought 885.5 billion KRW, with an average basis of +0.90 points (theoretical value +1.53 points).

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