KOSPI and KOSDAQ Start Strongly Stable... 4 Consecutive Trading Days of Recovery Trend

[Asia Economy Reporter Koo Eun-mo] Both the KOSPI and KOSDAQ markets showed slight gains in early trading, continuing their recovery trend for the fourth consecutive trading day.

On the 5th, the KOSPI opened at 2,330.55, up 2.66 points (0.11%) from the previous trading day. The KOSPI, which started higher, edged up to the 2,330 level in early trading, supported by net buying from institutional investors. As of 9:20 AM, it was trading at 2,336.15, up 8.26 points (0.35%) from the previous day.

Last week, the U.S. stock market faced downward pressure after U.S. President Donald Trump tested positive for COVID-19. Although volatility in the Korean stock market may temporarily increase this week, the possibility of a sustained downturn is considered low.

Lee Kyung-min, a researcher at Daishin Securities, said, "Due to increased uncertainty from the Trump factor, the KOSPI may temporarily fall below the 2,270 level, opening the possibility of further downside," but added, "Depending on Trump's health and approval ratings, even if the KOSPI's support level lowers, the chance of falling below 2,000 is low."

Attention should also be paid to whether the U.S. Democratic Party and the White House will reach an agreement on additional stimulus measures, which continued negotiations over the holiday. Seo Sang-young, a researcher at Kiwoom Securities, explained, "U.S. additional stimulus is also a factor that can increase volatility in the domestic market. If an agreement is reached, a rebound is expected due to additional liquidity, but if it fails, volatility is likely to increase."

Looking at the current trading trends by participant, institutional investors are net buyers with 101.6 billion KRW, while foreign and individual investors are net sellers with 44 billion KRW and 49.4 billion KRW, respectively.

By sector, transportation equipment, pharmaceuticals, and machinery are rising, while services and electrical/electronics are declining.

Among the top market capitalization stocks, Kia Motors, Hyundai Motor, Hyundai Mobis, SK Telecom, and LG Household & Health Care are rising. Conversely, NAVER, Celltrion, and Kakao are falling.

The KOSDAQ index also maintained slight gains in early trading. It opened at 848.67, up 0.52 points (0.06%) from the previous day, and is hovering around the 850 level with a slight upward trend. As of 9:20 AM, it was at 849.09, up 0.94 points (0.11%) from the previous day.

Regarding current supply and demand, individual and institutional investors are net buyers with 51 billion KRW and 10.2 billion KRW, respectively, while foreign investors are net sellers with 58.2 billion KRW.

By sector, computer services, textiles/apparel, pharmaceuticals, and transportation are rising, while publishing/media reproduction, paper/wood, and entertainment/culture are declining.

Among the top market capitalization stocks, Seegene, SK Materials, MedPacto, and CJ ENM are rising. On the other hand, Kakao Games, HLB, Celltrion Pharm, and Celltrion Healthcare are falling.

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