On Friday, Korea’s stock market index, Kospi, recovered to over 2,300 points after experiencing a significant drop the day before. The index closed at 2,302.81 points, up 3.73 points from the previous day. Despite foreign investors selling off a significant amount of stocks, retail investors and institutions supported the index by buying a net total of 100.5 billion won ($74.1 million) and 221.9 billion won, respectively. Foreign investors sold off 378.9 billion won. The secondary bourse, Kosdaq, also closed higher at 748.49 points.
An analyst at Shinhan Securities explained that the rebound in Kospi was driven by retail investors and institutions looking for bargain opportunities. Battery shares performed especially well after experiencing weak demand earlier in the week.
The dip in the market on Thursday was influenced by the US stock market’s plunge due to disappointing third-quarter results from major tech companies. The US’ strong gross domestic product growth in the third quarter also raised concerns about the continuation of higher interest rates. This was the first time Kospi fell below 2,300 points since January 6.
Market bellwether Samsung Electronics closed slightly higher, while SK hynix, the country’s second-largest chipmaker, closed slightly lower. The local currency, won, also strengthened slightly against the US dollar.
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