Powell Calms the Market, KOSPI and KOSDAQ Both Close Up Over 3%

Foreigners and Institutions Net Buyers... Individuals Net Sellers of 2 Trillion Won

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] Influenced by the strong performance of the U.S. stock market, the KOSPI and KOSDAQ indices rose more than 3%. The KOSPI rebounded in a single day due to buying by foreigners and institutions, aiming to reclaim the 3100 level.

On the 25th, the KOSPI closed at 3,099.69, up 3.50% (104.71 points) from the previous day. The index opened at 3,026.47, up 1.05% (31.49 points) from the previous trading day, showing a significant upward trend. Looking at investor trends, foreigners and institutions bought stocks worth 968.4 billion KRW and 978.2 billion KRW, respectively. Individuals alone sold stocks worth 1.9388 trillion KRW. On this day, individuals set a new record for the largest net selling. The previous largest net selling by individuals in the KOSPI market was 1.6809 trillion KRW on December 1, 2011. Last year, on November 5, individuals sold stocks worth 1.6218 trillion KRW.

The index is interpreted as having attracted rebound buying due to the sharp decline the previous day. Fed Chair Powell stated at a hearing that it could take three years to achieve the target inflation, which led the market to weigh the possibility of a prolonged zero interest rate environment. Expectations that an additional stimulus package worth $1.9 trillion could be passed on the 26th also positively influenced the stock market. Accordingly, the Japanese and Hong Kong stock markets, which had also declined along with the domestic market the previous day, showed a rebound. The Shanghai Composite Index in China rose mainly in infrastructure and financial-related stocks.

Among the top market capitalization stocks, Samsung Electronics (4.02%) and SK Hynix (9.19%) showed notable gains. The Philadelphia Semiconductor Index rose 3% on news that the Joe Biden administration would sign an executive order to strengthen the semiconductor supply chain in the U.S., which positively impacted the domestic semiconductor sector. Furthermore, SK Hynix’s stock price reflected good news from a purchase contract for an extreme ultraviolet (EUV) scanner, reaching a 52-week high. Other stocks such as NAVER (2.4%), LG Chem (3.5%), Hyundai Motor (4.2%), Samsung SDI (2.5%), and Kakao (2.3%) also rose.

The KOSDAQ index closed at 936.21, up 3.30% (29.90 points) from the previous day. It started the day at 910.15, up 0.42% (3.84 points) from the previous trading day, and continued to increase. Looking at investor trends, foreigners and institutions net bought stocks worth 125.9 billion KRW and 83.1 billion KRW, respectively. Individuals alone sold stocks worth 188.4 billion KRW.

Among the top market capitalization stocks, Celltrion Pharm and Celltrion Healthcare rose 10% and 7.8%, respectively. For Celltrion Group stocks, the European Medicines Agency’s official review process for the approval of the COVID-19 antibody treatment Regkirona positively influenced the market. Other stocks such as Kakao Games (4.4%), Alteogen (8.7%), and EcoPro BM (2.3%) also rose.

Lee Kyung-min, a researcher at Daishin Securities, said, “The KOSPI rebounded today reflecting the semiconductor sector’s strength and foreigners’ increased net buying of futures. The won-dollar exchange rate fell compared to the previous day due to the reaffirmation of the U.S. monetary easing policy stance, increased foreign net buying in the stock market, and the strengthening of the yuan.”

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