KOSPI Challenges 2000 Level, Rising 2% on Institutional and Foreign Investors' Joint 'Buying'... KOSDAQ Remains Flat

[Asia Economy Reporter Koo Eun-mo] The KOSPI surged more than 2% with simultaneous net buying by institutional and foreign investors, aiming to recover the 2000-point level. Meanwhile, the KOSDAQ index remained in a narrow range.

On the 19th, the KOSPI opened at 1,977.47, up 40.36 points (2.08%) from the previous trading day. The KOSPI, which started higher, is continuing its recent upward trend in the early session due to simultaneous net buying by institutional and foreign investors. As of 9:15 a.m., it was trading at 1,976.09, up 38.98 points (2.01%) from the previous day.

The previous day, the KOSPI closed at 1,937.11, up 0.51% from the previous trading day, buoyed by expectations of a global economic reopening and China's economic stimulus measures. The index rose as major global economies continued to show signs of reopening, and anticipation of large-scale stimulus ahead of China's Two Sessions was reflected. With U.S. index futures showing strength, institutions and foreigners led the index higher by net buying the electrical and electronics sector centered on Samsung Electronics.

Overnight, major U.S. stock indices rose sharply on hopes for a COVID-19 vaccine. On the 18th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 24,597.37, up 911.95 points (3.85%) from the previous day. The Standard & Poor's (S&P) 500 index rose 90.21 points (3.15%) to 2,953.91, and the tech-heavy Nasdaq index closed at 9,234.83, up 220.27 points (2.44%).

Sangyoung Seo, a researcher at Kiwoom Securities, said, "The U.S. stock market surged as expectations for successful vaccine development spread, highlighting the possibility of a faster economic reopening," and added, "This is expected to have a positive impact on the Korean stock market." He also analyzed, "Considering that concerns about delayed economic recovery have eased, raising expectations for foreign buying, the supply-demand impact is also favorable," and "Not only Jerome Powell, the Fed Chair who mentioned active responses, but also Yi Gang, Governor of the People's Bank of China, mentioned adopting more flexible and stronger monetary policies, which is positive."

Looking at the current trading trends by participant, institutions and foreign investors are leading the index rise with net purchases of 318.4 billion KRW and 178 billion KRW, respectively. In contrast, individual investors are realizing profits with net sales of 503 billion KRW.

By sector, transportation equipment, steel & metals, banking, and finance are rising, while food & beverages and services are declining.

Among the top market capitalization stocks, Hyundai Motor, Hyundai Mobis, Samsung Electronics, Samsung C&T, and Samsung SDI are rising. Conversely, Kakao, NAVER, and NCSoft are falling.

Currently, in the KOSPI market, 664 stocks are rising without any hitting the upper limit, 165 stocks are falling without any hitting the lower limit, and 105 stocks are unchanged.

Meanwhile, the KOSDAQ index is showing a flat trend. The KOSDAQ opened at 696.01, up 5.16 points (0.75%) from the previous day, but is moving around the 690 level in the early session. As of 9:15 a.m., it was at 689.42, down 1.43 points (0.21%) from the previous day.

Looking at the current supply-demand situation, individual investors are net buyers of 67.8 billion KRW, contrary to the KOSPI. Meanwhile, institutions and foreign investors are net sellers of 38.4 billion KRW and 13.2 billion KRW, respectively.

By sector, entertainment & culture, paper & wood, broadcasting services, and semiconductors are rising, while software, medical & precision instruments, and internet sectors are declining.

Among the top market capitalization stocks, EcoPro BM, CJ ENM, SK Materials, Alteogen, Studio Dragon, and KMW are rising. Conversely, Seegene, Celltrion Pharm, and Celltrion Healthcare are falling.

Currently, in the KOSDAQ market, 809 stocks are rising including KCT, which hit the upper limit, 393 stocks are falling including one stock that hit the lower limit, and 101 stocks are unchanged.

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