[Weekly Market Review] Market Sensitive to Positive News, KOSPI Jumps to 2500 Level

[Asia Economy Reporter Oh Ju-yeon] In the second week of November, the domestic stock market closed higher, reacting sensitively to positive factors such as the US presidential election results and the development of a COVID-19 vaccine. The KOSPI rose close to the 2500 mark, setting a new yearly high. While non-face-to-face (untact) related stocks, which had shown strong performance, experienced relative fluctuations due to the vaccine development news, individual investors took advantage of the dip by buying up NAVER, Kakao, NCSoft, and Seegene at low prices.

According to the Korea Exchange on the 14th, the KOSPI rose 1.91% from 2447.20 on the 9th to 2493.87 on the 13th. Early in the week, eco-friendly stocks lifted the index in response to the positive US election results, and later, contact-related stocks, which had been sidelined in the recent rally, rebounded on vaccine development news, driving the index upward.

Contrary to expectations of a correction after the rapid rise, the market continued to respond strongly to positive news and maintained its upward trend. In the first week of November, individual investors who had heavily bet on index declines with products like KODEX 200 Futures Inverse 2X and KODEX Inverse shifted from untact to contact sectors, focusing on buying NAVER and Kakao, whose stock prices relatively declined in this transition.

The stock most net-purchased by individuals was NAVER, with a total of 490.5 billion KRW bought from the 9th to the 13th. This was followed by Kakao (150.7 billion KRW), Seegene (150.7 billion KRW), Seegene (124.6 billion KRW), and NCSoft (112.6 billion KRW).

The top net-sold stock was Samsung Electronics. During this period, individuals sold Samsung Electronics shares worth 1.4451 trillion KRW. Samsung Electronics’ stock price rose 4.98% from 60,200 KRW on the 9th to 63,200 KRW on the 13th, hitting a 52-week high.

Next week, expectations of a continued rally due to reduced uncertainty over the US presidential election are mixed with concerns that index gains may be limited by lockdown measures amid a resurgence of COVID-19.

Researcher Roh Dong-gil of NH Investment & Securities said, "The inflow of foreign investor funds, relieved by the election results, led the domestic stock market’s rise," adding, "The buying trend by foreign and financial investment institutions is expected to positively affect the supply and demand of large-cap stocks centered on KOSPI 200."

He further analyzed, "Despite concerns over partial lockdowns, the environment where vaccine expectations can continue will favor value stocks centered on sensitive stocks for the time being," and noted, "It is a favorable environment for sectors related to the economy such as chemicals and transportation."

Researcher Roh predicted, "This week will focus on whether the US state-level lockdowns will spread, while placing weight on the relief rally and vaccine expectations."

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