KOSPI Recovers to 3070 Level Supported by Foreigners and Institutions Buying... Individuals Realize Profits

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[Asia Economy Reporter Lee Seon-ae] The KOSPI recovered to the 3070 level, supported by simultaneous buying by foreigners and institutions. It is the first time in about a month that the 3070 level has been reclaimed.

On the 30th, the KOSPI closed at 3070.00, up 33.96 points (1.12%) from the previous trading day. It is the first time in 19 trading days since the 3rd (3082.99) that the closing price exceeded the 3070 level.

Foreigners net bought 337.1 billion KRW, and institutions net bought 254.5 billion KRW, driving the upward trend. On the other hand, individuals net sold 604.4 billion KRW to realize profits.

Among the top market capitalization stocks, automobile and secondary battery-related stocks showed relatively high price increases. Representative examples include Hyundai Mobis (5.11%), Kia Motors (4.07%), Samsung SDI (2.92%), and SK Innovation (8.78%). By sector, paper and wood (3.83%), transportation equipment (2.44%), non-metallic minerals (2.28%), and insurance (2.14%) showed upward trends. Conversely, transportation and warehousing (-2.45%), construction (-1.62%), textiles and apparel (-1.18%), and steel and metals (-0.84%) showed declines.

Lee Kyung-min, team leader of the Asset Research Department at Daishin Securities, said, "After digesting the hedge fund supply and demand issues triggered by Arcaegos in the U.S., the acceleration of U.S. vaccination and the announcement of a large-scale infrastructure investment plan positively affected investor sentiment," adding, "In the recent rotation market, relatively underperforming secondary battery and automobile stocks rebounded, leading the stock market's rise."

The KOSDAQ closed at 958.06, up 3.96 points (0.42%). Foreigners (51.1 billion KRW) and institutions (19 billion KRW) showed net buying, while individuals net sold 43.3 billion KRW. Among the top 20 market capitalization stocks, nine stocks showed gains. Kakao Games rose 4.13% to 53,000 KRW, and Hugel (+2.56%) and EcoPro BM (+2.42%) also rose, while Celltrion Pharm (-2.21%), Celltrion Healthcare (-1.79%), and Wonik IPS (-1.35%) closed lower. By sector, finance (+5.66%), software (+1.49%), and publishing and media reproduction (+1.46%) showed strength, while other manufacturing (-3.36%), transportation (-1.08%), and distribution (-0.56%) closed lower.

Meanwhile, market attention is focused on the Biden administration's infrastructure investment policy. The Biden administration's stimulus plan, which focuses on infrastructure investment with more than $3 trillion (approximately 3,390 trillion KRW), is divided into △ 'physical' infrastructure investment such as civil engineering and eco-friendly projects △ social infrastructure investment such as education and healthcare. However, tax increases for funding are also planned. U.S. Treasury Secretary Janet Yellen said the infrastructure plan would be accompanied by tax hikes. Accordingly, the calculation of market impact has become complex as tax increases and economic improvement effects intertwine.

David Lefkowitz, head of U.S. equities at UBS Financial Services, told MarketWatch, "An increase in the corporate tax rate could moderately pull down the U.S. stock market, but American companies will still be able to achieve healthy net profit growth." He also predicted, "Because the tax increase is at least partially for infrastructure-related spending, it will boost economic growth and partially offset the stock market decline caused by the tax hike."

Ha In-hwan, a researcher at KB Securities, emphasized, "If the funding method is a tax increase (such as corporate tax), the stock market cannot help but become tense again." Since the Republican Party is likely to strongly oppose funding through tax increases, opinions between the Republican and Democratic parties are expected to clash regarding the funding method. Researcher Ha said, "The clash delays the timing when the tax increase issue affects the stock market," adding, "The risk of a stock market correction due to the tax increase issue is expected to be not at the policy announcement next week but when the tax increase method becomes more concrete (expected in 1 to 3 months)."

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