Kospi climbs back above 4,000 on foreign, institutional buying spree

(Yonhap)

South Korea’s main Kospi rebounded above 4,000 for the first time in five trading days on Thursday, on the back of solid performance of U.S. stocks overnight.

The Kospi stood at 4,009.37 as of 9:28 a.m. on Thursday, up 1.22 percent from the previous session.

It is the first time since November 20 that the index has climbed back above the 4,000 level during intraday trading.

The index opened at 3,989.45, up 0.72 percent from the previous close.

Foreign investors net purchased 58.2 billion won ($39.7 million) worth of Kospi stocks and institutions 111.1 billion won, adding upward pressure to the index. Retail investors were net sellers.

Foreign investors also net purchased 66.6 billion won worth of stocks on the Kospi 200 futures market.

In New York, stocks rose across all three major indices overnight as rotational buying flowed into artificial intelligence (AI)–related stocks, amid persistent expectations for an interest rate cut in December, despite strong employment indicators.

The number of continuing jobless claims - applications for unemployment benefits by those unemployed for two weeks or more released by the U.S. Department of Labor - increased by 7,000 from the previous week, stoking concerns about the job market.

Expectations of a December rate cut, however, continued to stimulate buying interest.

In particular, the stocks of Nvidia Corp. and Microsoft Corp., which had been weak amid worries that Google’s rise could erode their dominance in the AI infrastructure market, rebounded. Nvidia rose 1.37 percent and Microsoft 1.78 percent.

Alphabet Inc., whose shares had surged recently due to excitement over Gemini 3.0, an AI service which sharply reduced reliance on graphics processing units (GPUs), slipped 1.04 percent.

“The data released overnight, including U.S. initial jobless claims that exceeded market consensus, were not enough to derail expectations of a December rate cut,” noted Han Ji-young, an analyst at Kiwoom Securities Co. “The Kospi is expected to rise higher today, taking its cue from the U.S. market.”

Nvidia’s strength helped shares of SK hynix Inc. rise above 540,000 won, up 3.63 percent. Shares of Samsung Electronics Co. also climbed above 104,000 won, up 1.95 percent.

The stock prices of Samsung Biologics Co. also gained 0.79 percent, Celltrion Inc. 0.27 percent, Doosan Enerbility Co. 2.70 percent, Hanwha Aerospace Co. 2.18 percent), and KB Financial Group 0.48 percent.

Shares of Naver Corp., which announced the acquisition of Dunamu Inc., operator of Korea‘s largest cryptocurrency exchange Upbit, on Wednesday, fell 0.85 percent in early trading on Thursday.

Battery-related stocks also declined, with LG Energy Solution Ltd. falling 0.69 percent, LG Chem Ltd. 2.14 percent, POSCO Holdings Inc. 0.63 percent, and Hyundai Motor Co. 0.38 percent.

The secondary Kosdaq index rose 0.58 percent to 882.37 on Thursday morning after opening at 879.44, up 0.24 percent.

Shares of Alteogen Inc. rose 0.97 percent, Rainbow Robotics Co. 4.95 percent, Kolon TissueGene Inc. 0.15 percent, PharmaResearch 0.71 percent, and Robotis Inc. 2.23 percent were trading higher.

EcoPro BM Co., on the other hand, fell 1.07 percent, EcoPro Co. declined 1.08 percent, ABL Bio Inc. shed 0.17 percent, Peptron Inc. down 2.04 percent, and LegoChem Biosciences Inc. dropped 1.51 percent.

(Aromatica)

Separately, personal care products manufacturer Aromatica Co. saw its stock price surge 200 percent on the first day of Kosdaq trading on Thursday.

Aromatica shares were trading at 24,000 won as of 9:13 a.m., up 200 percent from its initial public offering price (IPO) of 8,000 won.

Immediately after the market opened, the stock briefly hit 31,500 won, up 293.75 percent.

Aromatica is a clean-beauty company rooted in aromatherapy.

It was founded in 2001 with the mission of raising awareness about the harmful effects of synthetic fragrances and promoting a culture of natural essential oils.

The company initially operated an organic raw-materials wholesale business, but later shifted its strategy to developing its own cosmetics containing essential oils.

Its main products include shampoo, hair tonic, and body oil.

Under the brand concept “Scalp to Skin,” the company plans to accelerate global expansion and pursue profitability-centered growth.

Aromatica had already drawn attention by recording the highest subscription competition rate among this year’s IPOs.

During the public subscription session held on November 18 and 19, the company achieved this year’s record competition ratio of 2,865.17 to 1.

The Kospi finished at 3,986.91 on Thursday, up 0.66 percent from the previous session. Kosdaq ended at 880.06, up 0.31 percent.

Shares of Aromatica closed 149 percent higher at 19,920 won.