KOSPI Nears 2070 Amid Individual Net Buying Despite US-China Conflict Concerns... KOSDAQ Slightly Firm

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[Asia Economy Reporter Koo Eun-mo] Despite concerns over trade conflicts between the United States and China, the KOSPI continues its recent upward trend as individual investors maintain buying momentum amid expectations of economic recovery. The KOSDAQ index is also holding firm gains and is making efforts to regain the 740 level.

On the 2nd, the KOSPI opened at 2,061.45, down 3.63 points (0.18%) from the previous trading day. Although the KOSPI started lower, it soon turned upward, continuing its recent rising trend. As of 9:28 a.m., it was trading at 2,074.71, up 9.63 points (0.47%) from the previous day.

Overnight, major indices on the New York Stock Exchange rose on hopes for economic recovery despite concerns over US-China trade tensions. On the 1st (local time) at the NYSE, the Dow Jones Industrial Average closed at 25,475.02, up 91.91 points (0.36%) from the previous day. The Standard & Poor's (S&P) 500 index rose 11.42 points (0.38%) to 3,055.73, and the tech-heavy Nasdaq closed at 9,552.05, up 62.18 points (0.66%).

Seo Sang-young, a researcher at Kiwoom Securities, said, “The Chinese government has ordered a halt to purchases of US soybeans, showing that US-China frictions are still expanding. Following this news, the semiconductor sector, which had been strong after President Trump’s press conference last Friday, weakened. However, with expectations for economic reopening, financial stocks, travel, and airline sectors showed strength, reflecting sectoral differentiation characteristic of the US stock market. Therefore, the Korean stock market is also expected to experience a rapid rotation among sectors.”

Looking at current trading trends by participant, individual and foreign investors are net buyers of 185.2 billion KRW and 13.4 billion KRW, respectively. In contrast, institutional investors are net sellers of 204 billion KRW.

By sector, transportation equipment, banking, steel & metals, and machinery are rising, while electricity & gas, transportation & warehousing, and pharmaceuticals are declining.

Among the top market capitalization stocks, Samsung SDI, Hyundai Motor, LG Household & Health Care, and LG Chem are rising. Conversely, Kakao, NAVER, Celltrion, Samsung Biologics, and SK Hynix are falling.

In particular, the domestic ‘Shipbuilding Big 3’ are surging sharply, buoyed by the largest-ever liquefied natural gas (LNG) vessel construction contract. The day before, Qatar Petroleum (QP), Qatar’s state-owned oil company, announced contracts worth 70 billion Qatari riyals (approximately 23.6 trillion KRW) with the three major Korean shipbuilders: Hyundai Heavy Industries Group, Samsung Heavy Industries, and Daewoo Shipbuilding & Marine Engineering. QP plans to receive over 100 LNG carriers from the three Korean shipbuilders by 2027.

Currently, in the KOSPI market, 524 stocks are rising without any hitting the upper price limit, 279 stocks are falling without any hitting the lower price limit, and 96 stocks are unchanged.

The KOSDAQ index is also continuing its three-day winning streak, challenging the 740 level. The KOSDAQ opened at 737.67, up 1.95 points (0.27%) from the previous day, maintaining firm gains in the early session thanks to net buying by individual investors. As of 9:28 a.m., it was trading at 739.10, up 3.38 points (0.46%) from the previous day.

Currently, individual and institutional investors are net buyers of 39.1 billion KRW and 6.7 billion KRW, respectively, while foreign investors are net sellers of 41 billion KRW.

By sector, transportation equipment & parts, metals, and general electrical & electronics are rising, while publishing & media reproduction and pharmaceuticals are declining.

Among the top market capitalization stocks, HL B, Helixmith, EcoPro BM, SK Materials, and Genexine are rising. Meanwhile, Seegene, Alteogen, and Celltrion Healthcare are falling.

In the KOSDAQ market, including SNK which hit the upper price limit, 737 stocks are rising, 449 stocks are falling without any hitting the lower price limit, and 126 stocks are unchanged.

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