KOSPI Recovers to 3170 Level... "Inflow of Overseas Fundamental Momentum"

Domestic Companies Also Show Profit Improvement
KOSDAQ Turns to Intraday Gains

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The KOSPI is showing an upward trend, recovering the 3170 level during the session. This rise is interpreted as being driven by the inflow of overseas fundamental momentum and strong performance by domestic companies.

As of 10:54 a.m. on the 6th, the KOSPI recorded 3172.28, up 0.79% (24.91 points) compared to the previous trading day. It even rose to 3174.16 at 10:53 a.m. that day.

It has been analyzed that the rise is due to the simultaneous inflow of overseas fundamental momentum and improvement in domestic companies' profits. Lee Kyung-min, a researcher at Daishin Securities, said, “Overseas stock markets are evolving into a macro and fundamental market phase, with base effects reflected not only in inflation indicators but also in real economic indicators.” He added, “Large-scale liquidity supply, ongoing record-high economic stimulus policies, and infrastructure investment policies will strengthen economic momentum.”

Additionally, Lee explained, “This year, domestic KOSPI companies’ operating profit has already reached 193 trillion won, and net profit 143 trillion won.” He interpreted, “The improvement in domestic corporate profits based on overseas fundamental momentum and the inflow of foreign net buying represent changes that can enhance the attractiveness of previously underperforming leading stocks and large-cap stocks.”

Foreigners and institutions’ buying pressure led to the index rise. Foreigners and institutions net bought 54.3 billion won and 11.8 billion won, respectively. Individuals net sold 63.4 billion won.

All sectors except for electrical and electronics rose. The banking sector showed the largest increase of 4.76%, followed by steel and metals (4.47%), transportation and warehousing (3.28%), insurance (2.92%), and securities (2.83%). Electrical and electronics fell by 0.67%.

The top 10 stocks by market capitalization showed mixed movements. POSCO had the largest gain of 4.52%, followed by Samsung Biologics (2.88%), Kakao (0.43%), LG Chem (0.22%), and Hyundai Motor (0.22%). On the other hand, Celltrion had the largest decline of 2.69%, followed by SK Hynix (-2.27%), Samsung SDI (-0.92%), Samsung Electronics (-0.73%), and NAVER (-0.55%).

At the same time, the KOSDAQ recorded 969.56, up 0.24% (2.36 points) from the previous trading day. It had fallen to 961.16 at 9:03 a.m. but then turned upward.

In the early session, KOSDAQ’s trading volume surpassed that of KOSPI. Individuals net bought 176.3 billion won. Foreigners and institutions net sold 125.8 billion won and 49.7 billion won, respectively.

Most sectors rose. The metals sector showed the largest increase of 2.39%, followed by textiles and apparel (1.91%), finance (1.58%), telecommunications services (1.33%), and non-metallic minerals (1.23%). On the other hand, retail (-0.96%), paper and wood (-0.94%), digital content (-0.57%), entertainment and culture (-0.52%), and pharmaceuticals (-0.37%) declined.

Most of the top 10 stocks by market capitalization fell. Celltrion Pharm’s decline was the largest at 2.31%, followed by Celltrion Healthcare (-2.18%), Pearl Abyss (-1.81%), Studio Dragon (-1.81%), Alteogen (-1.68%), HLB (-1.36%), Kakao Games (-0.38%), and EcoPro BM (-0.34%). CJ ENM (0.40%) and SK Materials (0.15%) rose.

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