The benchmark Korea Composite Stock Price Index surpassed the 2,430 level at a heat in the first day of trade after closing for 10 days for Chuseok and other public holidays. The market once moved up the 2,400 level in mid-session, hitting a record high for the first time in three months.
Foreign investors scooped up all the stocks sold by institutional and individual investors on the same day, leading to the rise of the index. The total amount of net purchase by foreigners on a day-to-day basis hit the highest after September 12, 2013.
Foreign investors mainly purchased information technology (IT) stocks which are expected to show performance growth in the third quarter. Most of stock items ranked high in terms of market capitalization in the KOSPI rose and the KOSDAQ closed higher as well.
According to the Korea Exchange on October 10, the KOSPI index closed at 2,433.31, up 39.34 points, or 1.64 percent, from the previous trading day. The market closed higher for a third straight session.
The KOSPI index started increasing as soon as the market was opened. Foreigners net purchased more than 400 billion won (US$352.42 million) worth of stocks from the morning and bought more in the afternoon, driving the index's gain.
The KOSPI market was on an upswing as the U.S. stock market was bullish during the holidays and exports in September reached a record high, driven by semiconductors.
On the same day, institutional and individual investors net sold 561.4 billion won (US$494.63 million) and 310.1 billion won (US$273.22 million) worth of local stocks, respectively. Foreign investors net bought 819 billion won (US$721.59 million) worth of stocks. They scooped up a net 326.2 billion won (US$287.4 million) worth of stocks in the electric and electronic sector alone.
The KOSDAQ market also climbed 1.77 points, or 0.27 percent, to close at 654.59. Individual and foreign investors net purchased 20.5 billion won (US$18.06 million) and 700 million won (US$616,740) worth of stocks, respectively, while institutional investors net sold 21 billion won (US$18.5 million).