KOSPI Slightly Declines Early in Trading for the First Time in 9 Sessions... "Caution Needed on Vaccine Optimism"

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] The KOSPI edged down in early trading, retreating to the 2470 level for the first time in nine trading days. Meanwhile, the KOSDAQ index rebounded after three trading days, showing a firm upward trend.

On the 12th, the KOSPI opened at 2482.68, down 3.19 points (0.13%) from the previous trading day. The KOSPI, which started lower, is slightly declining in early trading due to net selling by institutions and foreigners. As of 9:25 a.m., it was at 2473.15, down 12.72 points (0.51%) from the previous day.

Overnight, major indices on the New York Stock Exchange (NYSE) closed mixed. Cyclical stocks, which had surged on hopes for a COVID-19 vaccine, paused, while previously weak tech stocks rebounded, showing a recent reversal in trading. On the 11th (local time) at the NYSE, the Dow Jones Industrial Average closed at 29,397.63, down 23.29 points (0.08%) from the previous day. The Standard & Poor's (S&P) 500 index rose 27.13 points (0.77%) to 3,572.66, and the tech-heavy Nasdaq index gained 232.57 points (2.01%) to close at 11,786.43.

Although expectations for vaccines and treatments are rising, market participants point out that even if developed, it will take a long time before actual vaccinations can be administered. Sangyoung Seo, a researcher at Kiwoom Securities, said, "Controlling the spreading COVID-19 will not be easy without some economic lockdowns, and during this process, a slowdown in economic recovery is inevitable. Considering that many variables remain, such as the Biden administration’s trade and economic cabinet appointments, Federal Reserve board nominations, COVID-19 control, and fiscal stimulus measures, the possibility of sustained large-scale net buying by foreigners is low, which suggests that the Korean stock market may face selling pressure due to foreign investors’ supply concerns."

Looking at the current trading trends by participant, institutions and foreign investors are leading the index decline with net sales of 272.5 billion KRW and 13.3 billion KRW, respectively. In contrast, individual investors are net buyers with 299.5 billion KRW.

By sector, paper and wood, chemicals, and non-metallic minerals are rising, while banking, insurance, securities, and construction sectors are falling.

Among the top market capitalization stocks, Kia Motors, LG Chem, Kakao, NAVER, and SK Hynix are rising. Conversely, Celltrion, Samsung C&T, Hyundai Mobis, and LG Household & Health Care are declining.

The KOSDAQ index turned positive after three trading days, recording the 840 level. It opened at 844.64, up 4.74 points (0.56%) from the previous day, and is maintaining a rise of around 0.5% in early trading due to net buying by individual investors. As of 9:25 a.m., it stood at 844.88, up 4.98 points (0.59%) from the previous day.

Regarding current supply and demand, similar to the KOSPI, institutions and foreign investors are net sellers of 6.5 billion KRW and 3 billion KRW, respectively, while individual investors are net buyers of 13 billion KRW.

By sector, paper and wood, other services, pharmaceuticals, and semiconductors are rising, while broadcasting services and distribution sectors are falling.

Among the top market capitalization stocks, Genexine, Seegene, Alteogen, EcoPro BM, and Kakao Games are rising. On the other hand, Celltrion Pharm, Hugel, and CJ ENM are declining.

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