KOSPI Opens Higher on Global Stock Market Gains and Individual Net Buying

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] As global stock markets, including the United States, showed an upward trend fueled by announcements of large-scale fiscal policies from various countries, the domestic stock market also succeeded in rebounding. Both KOSPI and KOSDAQ started on a positive note, rising by around 1% each.

According to the Korea Exchange as of 9:12 AM on the 18th, the KOSPI stood at 1690.97, up 1.07% (17.83 points) from the previous day.

This appears to be due to the surge in the U.S. stock market on the 17th (local time), driven by the U.S. government's large-scale stimulus package and the Federal Reserve's (Fed) announcement to purchase commercial paper (CP). On the same day, European stock markets also rose on news of government stimulus measures.

The Dow Jones Industrial Average closed at 21,237.38, up 1,048.86 points (5.2%) from the previous trading day. The Standard & Poor's (S&P) 500 index also rose 143.06 points (6.00%) to 2,529.19. The Nasdaq Composite Index surged 430.19 points (6.23%) to close at 7,334.78.

Looking at trading trends by market participants in the KOSPI market, individuals were net buyers with 203.3 billion KRW. In contrast, foreigners and institutions were net sellers with 27.8 billion KRW and 179.9 billion KRW, respectively.

Most sectors showed gains. Chemicals (0.90%), distribution (0.39%), construction (1.17%), telecommunications (0.14%), and food and beverages (0.92%) all rose.

Among the top 10 market capitalization stocks, all except Hyundai Motor (-0.12%) showed gains. Samsung Electronics (1.69%), SK Hynix (1.99%), and Samsung Biologics (1.68%) rose.

KOSDAQ also rose 1.27% (6.78 points) to 521.51 compared to the previous day. On KOSDAQ, individuals were net buyers with 65.8 billion KRW, while foreigners and institutions were net sellers with 29.4 billion KRW and 34.5 billion KRW, respectively.

By sector, many sectors are rising, including IT components (1.47%), semiconductors (1.05%), pharmaceuticals (2.24%), and metals (1.32%).

Among the top 10 market capitalization stocks, trends diverged. Celltrion Healthcare (1.67%) and Studio Dragon (2.60%) rose, but CJ ENM (-0.74%) and Pearl Abyss (-2.89%) fell.

Seo Sangyoung, a researcher at Kiwoom Securities, explained, "Despite the sharp drop in the U.S. stock market the previous day, the domestic market showed a solid movement, including a temporary intraday rise due to a rebound buying wave from excessive declines. Considering the U.S. stock market surged on positive news such as the Fed's announcement to purchase CP, the domestic stock market is expected to show strength."

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