KOSPI Surpasses 3050 Early in Session, Challenges 3100... KOSDAQ Aims Steadily at 1000 Level

[Asia Economy Reporter Eunmo Koo] The KOSPI, which ushered in the era of the 3000-point mark, is continuing its unstoppable upward trend and is now challenging the 3100-point level. The KOSDAQ index also rose slightly, aiming steadily for the 1000-point mark.

On the 8th, the KOSPI opened at 3040.11, up 8.43 points (0.28%) from the previous trading day. The KOSPI, which started the day higher, has surpassed the 3050-point level early in the session as individual investors began buying, now challenging the 3100-point level. As of 9:20 a.m., it was trading at 3088.05, up 56.37 points (1.86%) from the previous day.

Overnight, major indices on the New York Stock Exchange hit record highs and rose sharply. Political uncertainty was resolved as Joe Biden’s inauguration as the next U.S. president was confirmed, and key economic indicators were favorable. On the 7th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 31,041.13, up 211.73 points (0.69%) from the previous day. The Standard & Poor’s (S&P) 500 index rose 55.65 points (1.48%) to 3803.79, and the tech-heavy Nasdaq index surged 326.69 points (2.56%) to close at 13,067.48.

Looking at the current trading trends by participant, individual investors are leading the index rise with net purchases of 328.2 billion KRW. In contrast, institutional and foreign investors are net sellers, offloading 238.7 billion KRW and 118.5 billion KRW respectively.

Analysts say that for the KOSPI to firmly establish itself above the 3000-point level, a significant rebound in earnings fundamentals this year is necessary. Soeun Ahn, a researcher at IBK Investment & Securities, said, “In the past, corporate earnings played a more important role than liquidity in overcoming the psychological resistance level of the KOSPI,” adding, “It will not be much different this time.” She explained, “The market’s expected corporate earnings for this year are lower than the record highs of 2017-2018. Of course, if COVID-19 management, vaccination, and large-scale stimulus measures lead to a better-than-expected fundamental rebound, stock prices could be rationalized. However, if expectations are not exceeded, the 3000-point level may remain a psychological resistance.”

By sector, most industries such as transportation equipment, chemicals, manufacturing, and securities are rising, while textiles and apparel are declining.

Top market capitalization stocks are also rising without exception. Hyundai Mobis and Hyundai Motor are surging over 10%, while SK Innovation, Kia Motors, LG Chem, and Samsung Electronics are also gaining.

The KOSDAQ index is also showing a firm upward trend, challenging the 1000-point level. The KOSDAQ opened at 990.70, up 1.84 points (0.19%) from the previous day, and rose slightly above 990 in early trading due to net buying by individual investors. As of 9:20 a.m., it was at 989.29, up 0.43 points (0.04%) from the previous day.

Regarding current supply and demand, similar to the KOSPI, individual investors are supporting the index with net purchases of 100 billion KRW. Meanwhile, foreign and institutional investors are net sellers, offloading 64.8 billion KRW and 29.1 billion KRW respectively.

By sector, food and tobacco, paper and wood, finance, and broadcasting services are rising, while other services, textiles and apparel, and pharmaceuticals are declining.

Among the top market capitalization stocks, EcoPro BM, CJ ENM, Alteogen, and Celltrion Healthcare are rising. Conversely, SK Materials, Genexine, Pearl Abyss, and HLB are falling.

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