Early Morning Uptrend... KOSPI Opens Near 1% Higher at 2078.11

KOSDAQ Rises Over 1%... Rebound Expected Within Box Range

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The KOSPI opened nearly 1% higher as individual investors' buying surged early in the session. The KOSDAQ index also rose more than 1%, approaching the 650 level.

On the 5th, the KOSPI started at 2078.11, up 0.91% (18.78 points) from the previous day. As of 9:35 a.m., it was trading at 2078.58, up 0.93% (19.25 points) compared to the previous day.

Looking at trading trends by participant, individuals net bought 308.2 billion KRW in the securities market. Foreigners and institutions net sold 52.2 billion KRW and 262 billion KRW, respectively.

Most sectors showed gains. The construction sector rose the most, up 2.37%. This was followed by distribution (1.46%), chemicals (1.46%), textiles and apparel (1.32%), and non-metallic minerals (1.28%). In contrast, the electric and gas sector (0.44%) and the electrical and electronics sector (0.09%) declined.

All of the top 10 market capitalization stocks were on the rise. LG Chem had the largest gain at 4.34%. Samsung SDI (2.38%), Samsung C&T (2.29%), LG Household & Health Care (2.29%), Celltrion (2.01%), and Hyundai Motor (1.77%) followed.

Currently, there are no stocks hitting the upper or lower price limits in the KOSPI market. 680 stocks are rising, 155 are falling, and 66 are unchanged.

The KOSDAQ also opened at 647.75, up 0.94% (6.02 points) from the previous day. As of 9:37 a.m., it was up 1.20% (7.67 points) at 649.40.

In the KOSDAQ market, individuals and institutions net bought 123.5 billion KRW and 332.1 billion KRW, respectively. Foreigners net sold 448.4 billion KRW.

By sector, all sectors except textiles and apparel (down 0.58%) and broadcasting services (down 0.02%) were up. Other services rose the most at 1.79%, followed by distribution (1.73%), pharmaceuticals (1.53%), telecommunications services (1.42%), and computer services (1.06%).

Most of the top 10 market capitalization stocks also showed gains. Celltrion Healthcare rose the most at 2.92%, followed by Hugel (1.29%), Wonik IPS (1.04%), and SK Materials (1.19%). HL Biotech (0.44%) and EcoPro BM (0.23%) declined.

In the KOSDAQ market, Logos Bio is hitting the upper price limit with a 29.89% increase. 977 stocks are rising, 255 are falling, and 87 are unchanged.

Seosangyoung, a researcher at Kiwoom Securities, analyzed that concerns about economic slowdown due to COVID-19 are easing thanks to the government's expanded supplementary budget, the strong performance of moderate Democratic presidential candidate former Vice President Joe Biden in the U.S. primaries, and emergency funding injections by the U.S. Congress and the International Monetary Fund. However, he pointed out the need to note that unlike in the past, COVID-19 cases have weakened both demand and supply sides. Researcher Seo said, "The UN announced that exports will decrease by 50 billion dollars due to this situation, and South Korea is expected to see a 3.8 billion dollar decline. However, considering that governments including South Korea and the U.S. are actively injecting funds and lowering interest rates to supply liquidity, the stock market is expected to rebound for the time being, but within a limited range, resulting in a box-range market."

This content was produced with the assistance of AI translation services.