KOSPI Rises on News of US Stimulus Bill Passing House... Recovers to '2980 Level'

[Image source=Yonhap News]

[Asia Economy Reporter Ji-hwan Park] On the 11th, the KOSPI started with a slight rise. It succeeded in reversing the trend after five consecutive days of decline. Analysts attribute this to the U.S. House of Representatives passing a massive additional fiscal stimulus package worth $1.9 trillion (approximately 2,100 trillion KRW), which boosted investor sentiment.

As of 9:21 a.m. that day, the KOSPI was at 2,980.63, up 22.51 points (0.76%) from the previous trading day. The index started at 2,964.30, up 6.18 points (0.21%) from the previous close, and continued its upward trend.

By investor type, individuals and foreigners were net buyers in the early session, purchasing 11.8 billion KRW and 72.8 billion KRW respectively. Meanwhile, institutions were net sellers with 85.7 billion KRW. By sector, all sectors except transportation and warehousing, telecommunications, and paper and wood showed an upward trend.

Among the top 10 companies by market capitalization, most stocks were on the rise. Samsung SDI recorded the largest gain, rising 3.77% to 660,000 KRW compared to the previous day. SK Hynix (2.63%) and LG Chem (2.92%) also rose by over 2%. Samsung Electronics (0.74%) and Hyundai Motor (0.44%) also increased. On the other hand, NAVER (-0.27%) and Celltrion (-0.18%) declined.

The KOSDAQ also showed an upward trend. The index rose 0.43% (3.87 points) to 893.94 compared to the previous day.

Among the top 10 companies by market capitalization, there were mixed movements. EcoPro BM rose the most at 1.09%. Celltrion Healthcare (0.25%), Celltrion Pharm (0.14%), and Pearl Abyss (0.46%) also saw slight increases. Conversely, HLB (-1.46%), Alteogen (-2.28%), and Seegene (-2.40%) declined.

The domestic stock market's rise that day is attributed to the strong performance of the U.S. stock market overnight, buoyed by the Biden administration's new stimulus deal. On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 32,297.02, up 464.28 points (1.46%) from the previous trading day, and the Standard & Poor's (S&P) 500 index closed at 3,898.81, up 23.37 points (0.6%). The Dow set record highs both intraday and at closing. However, the tech-heavy Nasdaq closed down 4.99 points (0.04%) at 13,068.83.

Se Sang-young, a researcher at Kiwoom Securities, evaluated, "The U.S. Congress passing an additional stimulus package and the continued liquidity supply in the U.S. are positively influencing investor sentiment despite recent concerns about liquidity absorption in China."

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