KOSDAQ Soars in a Rebound Market

12.08% Increase, 8.19% Rise in KOSPI Dominates... Less Impact from Foreign Selling and Large Inclusion in Top Net Purchases

[Asia Economy Reporter Song Hwajeong] Since the outbreak of the novel coronavirus infection (COVID-19), the KOSDAQ has shown a stronger upward trend than the KOSPI in the rebound market. This appears to be because the KOSDAQ was relatively less affected by foreign selling pressure, and the remarkable rise of COVID-19-related bio stocks led to the KOSDAQ index's strength.

According to the Korea Exchange on the 21st, the KOSDAQ rose 12.08% from the beginning of this month through the previous day. During the same period, the KOSPI increased by 8.19%. Compared to the low point based on the closing price on the 19th of last month, the KOSDAQ rose 48.9%, while the KOSPI rose 30.24%, with the KOSDAQ's increase significantly surpassing that of the KOSPI.

This strong performance is interpreted as the KOSDAQ being relatively less affected because foreign selling was concentrated on large-cap stocks. Since the beginning of this month, foreigners sold 3.4008 trillion KRW in the KOSPI market, while they sold 469.6 billion KRW in the KOSDAQ. From last month until the previous day, foreigners net bought on the KOSDAQ for 14 days. During the same period, the KOSPI market recorded net buying only on two days.

Many KOSDAQ stocks were also included among the top foreign net purchases this month. Foreigners bought Samsung Electronics the most with 144.7 billion KRW, followed by Hanjin KAL with 56.4 billion KRW. Other KOSDAQ companies such as Pearl Abyss (45.6 billion KRW), KM Healthcare (29.5 billion KRW), Studio Dragon (23.2 billion KRW), HL Biopharma (17.8 billion KRW), and Komipharm (14.5 billion KRW) ranked within the top 10 foreign net purchases.

The strength of bio stocks related to COVID-19 also contributed to the relative advantage of the KOSDAQ. Among the top gainers this month were COVID-19-related stocks such as MacuIcS (190.13%), Celltrion Pharm (107.54%), Philocis Healthcare (104.9%), and Green Cross MS (101.46%). Additionally, Kolon Life Science surged sharply by 215.81% this month alone following news of the resumption of the U.S. Phase 3 clinical trial for its arthritis gene therapy 'Invossa (Invossa K Injection),' highlighting the strength of bio stocks.

Along with the KOSDAQ's strength, KOSDAQ-related exchange-traded funds (ETFs) also recorded high returns. KOSEF KOSDAQ150 Futures Leverage rose 30.02% this month, while KODEX KOSDAQ150 Leverage increased by 29.98%. TIGER KOSDAQ160 Leverage (29.30%), HANARO KOSDAQ150 Futures Leverage (28.63%), and KBSTAR KOSDAQ150 Futures Leverage (28.40%) also rose sharply.

Yeom Dongchan, a researcher at Ebest Investment & Securities, said, "Due to relatively favorable supply and demand conditions, the KOSDAQ is likely to outperform the KOSPI in terms of performance for the time being," adding, "In particular, growth-oriented small and mid-cap stocks are expected to show strength."

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