Initially Started Rising but 'Volatile Market Continues'... Roller Kospi Causes Nervous Individuals to 'Sell'

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] The domestic stock market started higher on the 12th. This is interpreted as being influenced by the significant rise in the U.S. stock market.

On this day, the KOSPI opened at 3,030.73, up 0.57% from the previous day. The KOSDAQ started the session at 910.41, up 0.26%. As of 9:10 a.m., the KOSPI was recording 3,053.70, up 1.33%. The KOSDAQ was at 916.61, up 0.95%.

As the volatile market continues, anxious individual investors are showing a selling preference in the early session. Individuals are net selling 921 billion KRW in the KOSPI market. In the KOSDAQ market, they are net buying 21.4 billion KRW. Meanwhile, foreigners continue to show a buying preference following the previous day. On the previous day, the Korean stock market showed a strong upward trend due to foreigners' net buying of spot and futures on the futures and options expiration day. As of 9:12 a.m., foreigners are buying 68.9 billion KRW worth in the KOSPI market. In the KOSDAQ market, they are net selling 12.2 billion KRW. Institutions are net buying 16.9 billion KRW in the KOSPI market and net selling 9.1 billion KRW in the KOSDAQ market.

By KOSPI sector, non-metallic minerals (2.36%), paper and wood (2.02%), and pharmaceuticals (1.83%) are on the rise. Conversely, insurance (-0.93%), banks (-0.81%), and financials (-0.07%) are declining. Among the top market capitalization stocks, NAVER (4.28%), Samsung Biologics (3.64%), and SK Hynix (3.65%) are rising sharply. Most KOSDAQ sectors are also on the rise. Paper and wood (2.76%), general electrical and electronics (1.50%), and semiconductors (1.41%) are increasing their gains. Among the top market capitalization stocks, EcoPro BM (4.01%), Pearl Abyss (2.02%), and Alteogen (1.78%) are rising. Meanwhile, Seegene (-0.85%) is declining.

Seosangyoung, a researcher at Kiwoom Securities, said, "The European Central Bank (ECB) announced an acceleration in bond purchases, which stabilized interest rates. Supported by this, the Philadelphia Semiconductor Index showed a strong 4.09% gain in the U.S. stock market, and the tech-heavy Nasdaq surged, which will have a positive impact on the Korean stock market." He added, "However, with upcoming U.S. and China real economy indicators and the Federal Open Market Committee (FOMC) next week, rather than showing continuous strong gains, the market is expected to continue to show significant sectoral differentiation and large fluctuations."

Lee Jae-sun, a researcher at Hana Financial Investment, also said, "The domestic stock market is likely to continue a volatile trend due to major countries' inflation and domestic demand indicators that act as factors for interest rate direction, and ahead of the U.S. March FOMC meeting on the 17th." He added, "There is no clear sign of a trend-based improvement in risk asset preference."

Meanwhile, major indices on the New York Stock Exchange rose sharply, supported by improved U.S. unemployment data, the ECB's measures to curb bond yield increases, and President Joe Biden's signing of the $1.9 trillion stimulus bill. On the 11th (U.S. time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 32,485.59, up 188.57 points (0.58%) from the previous session. The Standard & Poor's (S&P) 500 index rose 40.53 points (1.04%) to 3,939.34, and the tech-heavy Nasdaq index surged 329.84 points (2.52%) to 13,398.67. The Dow continued its record-high streak, and the S&P 500 surpassed its previous all-time high recorded on February 16. The market closely watched U.S. unemployment data, Treasury yield trends, and the ECB's monetary policy decisions. With U.S. Treasury yields stabilizing, tech stocks resumed their strength, and the signing of additional fiscal stimulus supported investor sentiment.

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