Institutions Support KOSPI, Recovering 2100 Level in One Day

KOSDAQ Falls Below 740... Closes at 737.97
Bio Sector Weakness... Game and Content Sectors Rise on Hopes of China Lifting 'Hanhanryeong' Ban

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The KOSPI index closed the day recovering to the 2100 level after a day. Although buying pressure from individual and foreign investors was strong, institutions absorbed this selling, preventing the index from falling. While sectors such as biotech, which had previously shown strength, declined, entertainment culture sectors like gaming and digital content showed an upward trend. This appears to be driven by expectations of the lifting of the Chinese ban on Korean content (Hallyu ban).

On the 30th, the KOSPI index closed at 2108.33, up 0.71% (14.85 points) from the previous day. It opened at 2124.38, rebounding about 1.5% from the previous day, and by 1:52 PM rose to 2134.38, increasing the gain to nearly 2% compared to the previous session. However, it then slightly declined and closed in the 2100 range.

The buying by institutions withstood the 'selling parade' by foreigners and individuals. On this day in the KOSPI market, individuals and foreigners net sold 70.9 billion KRW and 166 billion KRW respectively, while institutions net bought 239.5 billion KRW.

Most sectors rose. The textile and apparel sector rose 4.38%, showing the largest gain. This was followed by precision medical instruments (3.99%), chemicals (@.24%), and electric and gas utilities (1.93%). On the other hand, pharmaceuticals (-1.19%), food and beverages (-0.54%), and non-metallic minerals (-0.33%) declined.

Most of the top 10 market capitalization stocks rose. LG Household & Health Care rose the most at 3.5%, followed by SK Hynix (1.7%), NAVER (1.1%), and Samsung Electronics (0.7%). Meanwhile, Celltrion (-1.6%), Samsung Biologics (-1.1%), and Samsung C&T (-0.4%) fell. Kakao remained flat.

The KOSDAQ index also showed a decline after an initial rise, closing at 737.97, breaking below the 740 level. This was up 0.45% (3.28 points) compared to the previous session. Similar to KOSPI, it rose early in the session but then declined. It opened at 744.54, up 1.34% from the previous day, but this was the highest price of the day. It then dropped to 731.76 by 11:21 AM, putting the 730 level at risk. Afterwards, it rebounded and closed in the 737 range.

In the KOSDAQ market, foreigners net bought 32.2 billion KRW. Individuals and institutions net sold 7.1 billion KRW and 11.4 billion KRW respectively.

Most sectors rose. The entertainment and culture sector rose 7.11%, showing the largest movement. This was followed by digital content (4.34%), broadcasting services (3.24%), telecommunications and broadcasting services (2.85%), and chemicals (1.90%). On the other hand, transportation equipment and parts (-2.14%), internet (-1.90%), and distribution (-1.42%) declined.

Among the top 10 market capitalization stocks, declines were dominant. HL Biopharma fell the most at -4.5%, followed by Seegene (-2.6%), Celltrion Healthcare (-2.4%), and Celltrion Pharm (-1.7%). Meanwhile, stocks related to gaming and digital content rose significantly. Studio Dragon rose the most at 8.5%, followed by Pearl Abyss (6.6%) and CJ ENM (5.0%).

The lifting of the Hallyu ban appears to have acted as a positive factor, with China's largest travel company Trip.com Group and the Korea Tourism Organization jointly promoting tourism products. Previously, the Korea Tourism Organization reportedly began selling Korean tourism products together with Trip.com's brand 'Ctrip.' One of Trip.com's co-founders, Chairman Liang Jianzhang, personally appeared to introduce travel destinations and featured Korean tourism products in the 'Super Boss Live Show,' where hotel accommodations and tourism products were sold at discounted prices. Since the Hallyu ban began in 2017, this is the first time Korean tourism products are officially sold throughout China, raising expectations for the full resumption of tourism exchanges.

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