KOSPI Slightly Lower in Early Trading Due to Institutional Net Selling... KOSDAQ Holds at 840 Level

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] The KOSPI and KOSDAQ markets started higher but showed a slight decline in the early session, appearing hesitant.

According to the Korea Exchange on the 27th, the KOSPI opened at 2,371.95, up 2.63 points (0.11%) from the previous trading day. Although the KOSPI started higher, it soon turned downward and showed a slight decline in the early session. As of 9:20 a.m., it was at 2,362.63, down 6.69 points (0.28%) from the previous day.

Overnight, major indices on the New York Stock Exchange rose ahead of the Jackson Hole meeting, supported by strong economic indicators and gains in tech stocks. On the 26th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 28,331.92, up 83.48 points (0.3%) from the previous day. The Standard & Poor's (S&P) 500 index rose 35.11 points (1.02%) to 3,478.73, and the tech-heavy Nasdaq index closed at 11,665.06, up 198.59 points (1.73%).

Sangyoung Seo, a researcher at Kiwoom Securities, explained, “The U.S. stock market showed strength only in some momentum stocks, while other sectors experienced severe differentiation and weakness. This is expected to affect the Korean stock market as well, as there is a high possibility of concentration on stocks that have recently shown an upward trend.”

He added, “If the third stage of social distancing is implemented, all activities except essential social and economic activities will be basically prohibited, public institutions will require all personnel except essential staff to work from home, and private companies will be advised to follow this policy. Therefore, the market is expected to react sensitively today to news about new COVID-19 cases and the third stage social distancing measures.”

Looking at trading trends by participant, institutional investors are net sellers with 118.6 billion KRW. In contrast, individual and foreign investors are net buyers with 114.4 billion KRW and 2.9 billion KRW, respectively.

Among the top market capitalization stocks, Kakao, NAVER, NCSOFT, Samsung SDI, SK Hynix, and LG Chem are rising. On the other hand, Samsung C&T, Samsung Electronics, LG Household & Health Care, and Samsung Biologics are declining.

The KOSDAQ index is also showing a slight decline in the early session due to selling by institutions and foreigners. The KOSDAQ index opened at 842.38, up 1.03 points (0.12%) from the previous day, but like the KOSPI, it soon turned downward after opening and is maintaining a slight downward trend. As of 9:20 a.m., it stands at 840.55, down 0.80 points (0.10%) from the previous day.

Currently, institutions and foreign investors are net sellers of 28.5 billion KRW and 5.1 billion KRW, respectively. Meanwhile, individual investors are net buyers of 40.9 billion KRW.

Among the top market capitalization stocks, Seegene, HL Biopharma, Alteogen, and EcoPro BM are rising. Conversely, Genexine, CJ ENM, Hugel, and Celltrion Pharm are declining.

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