Ahead of Entering Earnings Season... Korean Stock Market Confirming Resolution of Uncertainties

KOSPI Surpasses 3090, KOSDAQ Breaks Through 960

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The KOSPI has surpassed the 3090 level and has been steadily rising since the 24th. Analysts interpret this as a phase where various uncertainties are being resolved ahead of the full-scale earnings season, with announcements such as the U.S. infrastructure investment plan.

As of 11:06 a.m. on the 1st, the KOSPI recorded 3090.88, up 0.96% from the previous day. After starting with a slight gain at 3073.77, the index has been expanding its gains. This is attributed to the strong performance of technology and growth stocks in the U.S. stock market on the 31st of last month (local time), which positively influenced domestic semiconductor and secondary battery sectors, both of which are among the top market capitalization stocks.

Lee Hyoseok, a researcher at SK Securities, explained, "As we enter April, we are cautiously confirming the possibility of a rebound before the earnings season fully begins. If uncertainties are further resolved, the momentum could strengthen."

By investor type, foreigners and institutions showed strong buying trends. They net purchased 289.3 billion KRW and 117.3 billion KRW respectively, while individuals sold off 400.9 billion KRW worth of stocks.

Most sectors are on the rise. The order of gains was textiles and apparel (2.20%), electrical and electronics (1.62%), chemicals (1.54%), medical precision (1.43%), and manufacturing (1.13%). Construction (-0.89%) and transportation and warehousing (-0.83%) sectors declined.

Most of the top 10 market capitalization stocks were on an upward trend. SK Hynix showed the largest gain at 4.53%, followed by Hyundai Motor (2.06%), LG Chem (1.37%), Samsung Electronics (1.35%), and Kia Motors (1.21%). Only Samsung Biologics fell by 0.53%, while Celltrion remained flat.

The KOSDAQ, which had shown a decline at one point, also reversed. At the same time, it recorded 961.61, up 0.58% from the previous day. After opening at 956.87, up 0.07% from the previous day, it dropped to 954.93 around 9:30 a.m., down 0.13% from the previous day. It then resumed its upward trend, surpassing the 960 level.

In the KOSDAQ market, foreigners and individuals showed notable buying trends, net purchasing 17.1 billion KRW and 19.6 billion KRW respectively, while institutions net sold 35.2 billion KRW.

Most sectors are rising. The publishing and media reproduction sector had the largest gain at 3.20%, followed by paper and wood (2.53%), finance (2.47%), and computer services (1.87%). Non-metal (-1.10%) and textiles and apparel (-0.85%) sectors declined.

Among the top market capitalization stocks, more stocks rose than fell. Pearl Abyss had the largest gain at 5.29%, followed by Seegene (1.31%) and EcoPro BM (1.10%). HLB (-3.19%) and CJ ENM (-0.49%) declined.

Kim Yumi, an economist at Kiwoom Securities, said, "Considering that the U.S. 10-year Treasury yield fell to around 1.72% during the domestic market session yesterday afternoon, yet the index closed lower mainly due to rebalancing sell orders on the last trading day of the quarter, especially in large semiconductor stocks, an increase centered on the semiconductor sector and growth stocks was expected. Depending on the specific details of U.S. infrastructure investment, some sectors among the economically sensitive industries will be highlighted," she predicted.

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