KOSPI Recovers to 2,000 Level After Two and a Half Months... KOSDAQ Firm at 710 Level

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] The KOSPI index surpassed the 2000 mark immediately after opening, recovering the 2000 level for the first time in about two and a half months since March. The KOSDAQ index, which regained the 700 level the previous day, is also maintaining an upward trend in the early trading session.

On the 21st, the KOSPI opened at 2003.20, up 13.56 points (0.68%) from the previous trading day. Having closed at 1989.64 the day before, just shy of the 2000 mark, the KOSPI started the day by regaining the 2000 level. This is the first time since March 6 that the index has surpassed 2000 during trading hours. As of 9:20 AM, it was at 2002.18, up 12.54 points (0.63%) from the previous day.

Overnight, major U.S. stock indices rose, supported by expectations of economic normalization and strong international oil prices. On the 20th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 24,575.90, up 369.04 points (1.52%) from the previous day. The Standard & Poor's (S&P) 500 index rose 48.67 points (1.67%) to 2,971.61, and the tech-heavy Nasdaq closed at 9,375.78, up 190.67 points (2.08%).

Sangyoung Seo, a researcher at Kiwoom Securities, commented, "As U.S. tech stocks actively respond to online-related industries and prepare for the post-COVID era, semiconductor sectors and related companies led the rise in the U.S. stock market, which is positive for the Korean stock market." He added, "Especially with all 50 states announcing economic reopenings, expectations for economic recovery have increased, leading to strength in industrial and financial stocks, reflecting a higher preference for risk assets."

However, he noted, "It is important to pay attention to the fact that pharmaceutical, bio sectors, and untact-related stocks, which had been strong, are showing tendencies of selling pressure as concerns about COVID-19 resurgence ease." Considering this, he forecasted, "The Korean stock market is expected to be led by gains in semiconductors, industrials, and financial sectors, but mid- and small-cap individual stocks may experience profit-taking, so large-cap stocks are likely to show relative strength compared to mid- and small-caps today."

Looking at current trading trends by investor type, individual investors are net buyers with 240.3 billion KRW, resuming their buying stance, and foreign investors are also net buyers with 2 billion KRW. Conversely, institutional investors are net sellers with 244.9 billion KRW.

By sector, machinery, services, and chemicals are rising, while insurance, food and beverages, and pharmaceuticals are declining.

Among the top market capitalization stocks, LG Chem, NAVER, Samsung SDI, Kakao, Hyundai Mobis, and SK Telecom are rising. On the other hand, LG Household & Health Care, Samsung Biologics, and Celltrion are falling.

Currently, in the KOSPI market, 597 stocks are rising without any hitting the upper limit, 196 stocks are falling without any hitting the lower limit, and 97 stocks are unchanged.

The KOSDAQ index, which regained the 700 level the previous day, is also continuing its upward trend. It opened at 714.33, up 5.57 points (0.79%) from the previous day, maintaining a strong close in the early session and continuing its three consecutive days of gains. As of 9:20 AM, it was at 714.44, up 5.68 points (0.80%) from the previous day.

Regarding current supply and demand, individual investors are leading the rise with net purchases of 62.1 billion KRW. Meanwhile, foreign and institutional investors are net sellers with 55.7 billion KRW and 5.3 billion KRW, respectively.

By sector, telecommunications services, metals, transportation, and machinery & equipment are rising, while digital content and entertainment & culture are declining.

Among the top market capitalization stocks, HL Biopharma, EcoPro BM, Seegene, KMW, Alteogen, and CJ ENM are rising. Conversely, Pearl Abyss is falling.

Currently, in the KOSDAQ market, including Dongguk S&C which hit the upper limit, 793 stocks are rising, 385 stocks are falling without any hitting the lower limit, and 123 stocks are unchanged.

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