KOSPI Ends Higher Despite US Tax Issues... "Rechallenge Previous Highs Next Week"

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] On the 23rd, the KOSPI initially fell to the 3040 level influenced by the weak U.S. market due to news of a capital gains tax increase but ultimately succeeded in closing higher.

According to the Korea Exchange on the day, the KOSPI closed at 3186.10, up 0.27% (8.58 points) from the previous trading day. The KOSPI started the session at 3173.47, down 4.05 points (0.13%) from the previous day. Although it showed weakness early on due to the U.S. market's capital gains tax hike issue, it reduced losses and successfully turned to an upward trend thanks to individual investors' buying power.

By investor type, individuals led the index with a net purchase of 234.8 billion KRW alone. Foreigners and institutions net sold 26.8 billion KRW and 212 billion KRW, respectively.

Among the top 10 KOSPI market capitalization stocks, SK Hynix (-0.38%), NAVER (-0.66%), Hyundai Motor (-2.21%), and Samsung SDI (-0.30%) showed weakness. In contrast, Samsung Electronics (0.49%), LG Chem (0.34%), and Samsung Biologics (0.87%) rose.

The KOSDAQ also closed at 1026.82, up 0.11% (1.11 points) from the previous day. The index started the session at 1024.29, down 0.14% (1.42 points) from the previous day.

By investor type, foreigners and institutions bought stocks worth 35.3 billion KRW and 64.8 billion KRW, respectively. Individuals sold stocks worth 80.7 billion KRW.

Among the top 10 KOSDAQ market capitalization stocks, all except EcoPro BM (2.23%) and Kakao Games (2.32%) were weak. Celltrion Healthcare (-0.24%), Celltrion Pharm (-0.14%), Alteogen (-3.40%), Studio Dragon (-0.98%), SK Materials (-0.55%), CJ ENM (-0.21%), and HLB (-0.44%) declined.

With the news of conditional approval for COVID-19 self-diagnostic kits, related stocks also showed strength. On the day, Access Bio rose 5.93%, and Seegene (9.69%), LabGenomics (8.48%), and Sugentech (3.26%) also showed strong performance.

Lee Jaeseon, a researcher at Hana Financial Investment, said, "This week, the KOSPI saw profit-taking mainly by foreigners and institutions after breaking through the previous high of 3220," adding, "Next week, it is expected to attempt breaking through the previous high again." He noted, "It is necessary to pay attention to sectors where earnings consensus has been revised upward recently, as they recorded favorable returns," adding, "In the past month, sectors with strong upward revisions in EPS consensus were securities, steel, banking, and energy, and except for banking, all outperformed the benchmark."

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