KOSPI Extends Gains Despite Overbought Signals

South Korea's KOSPI index is poised for further gains on June 19, 2026, despite technical indicators suggesting it is overbought. The benchmark index closed up 0.44% at 2,758.42 on June 18, marking its fourth consecutive session of increases, totaling a 1.7% rise. Foreign investors continue to drive the rally, recording their sixth straight session of net buying with purchases totaling KRW 338.4 billion ($244.5 million) on June 18. This influx of foreign capital is counteracting selling pressure from institutional and retail investors, who offloaded KRW 356.4 billion and KRW 10.4 billion, respectively. The KOSPI's 14-day Relative Strength Index (RSI) reached 71.04, exceeding the 70-point threshold typically indicating an overbought market. Despite these technical warnings, strong foreign demand suggests continued upward momentum for the index.