Samsung Electronics up 1.6%·Institutions Lead Market with 1 Trillion Won... Overcoming Short-Selling Fear, KOSPI Hits All-Time High

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 3rd, when short selling resumed and fear was widespread in the domestic stock market, the market overcame this and set a new all-time high closing price record. The strong performance of Samsung Electronics, the top market cap stock, led the market upward. Although individual investors engaged in profit-taking, foreign investors and institutions simultaneously bought, adding momentum to the market's rise. Notably, institutional net purchases in the KOSPI market on that day approached 1 trillion KRW.

On the 10th, the KOSPI index opened at 3,201.46, up 4.26 points (0.13%), and extended its gains. During the session, it surpassed the 3,250 level. This was the second time ever that the KOSPI broke the 3,250 mark intraday, the first being on January 11 this year (3,266.23). The KOSPI closed at 3,249.30, up 1.63% for the day, marking an all-time high closing price. The previous highest closing price was 3,220.7, recorded on the 20th of last month.

Individual investors sold a net 1.1923 trillion KRW to realize profits, but foreign investors and institutions bought net amounts of 238.4 billion KRW and 967.4 billion KRW respectively, supporting the index's rise. This marked foreign investors' first net buying in nine trading days, and institutions' net purchases over the past four trading days totaled 1.7 trillion KRW.

By sector, most rose including Volatility Index (5.54%), Securities (4.08%), Transportation & Warehousing (3.52%), Textile & Apparel (2.89%), Distribution (2.68%), Pharmaceuticals (2.67%), Steel & Metals (2.47%), Transportation Equipment (2.4%), and Mid-cap stocks (2.12%), while Medical Precision (-0.08%) and Insurance (-0.49%) declined.

Among the top market cap stocks, most increased: Samsung Electronics (1.59%), SK Hynix (0.39%), Naver (0.28%), Samsung Biologics (1.49%), Kakao (1.31%), Hyundai Motor (2.46%), Samsung SDI (1.56%), Celltrion (3.19%). LG Chem (-0.76%) fell slightly.

The KOSDAQ opened at 979.38, up 1.08 points (0.11%). After rising above the 990 level during the session, it closed at 992.80, up 1.48%. Individual and institutional investors bought net amounts of 42.1 billion KRW and 1.3 billion KRW respectively, while foreign investors sold a net 19.5 billion KRW.

Top market cap stocks on KOSDAQ all rose, including Celltrion Healthcare (2.92%), Celltrion Pharm (4.93%), Pearl Abyss (6.61%), Kakao Games (2.08%), EcoPro BM (0.33%), SK Materials (1.32%), HLB (2.56%), Alteogen (2.99%), CJ ENM (1.61%), Studio Dragon (0.30%), and Soulbrain (0.09%).

Seo Sang-young, a researcher at Mirae Asset Securities, said, "The strong performance of the US stock market, driven by the Biden administration's active stimulus measures, positively influenced the domestic market. The easing of concerns about the Federal Reserve's tapering due to employment contraction also appears to have had a favorable impact on the stock market."

Chae Hyun-gi, a researcher at Cape Investment & Securities, summarized, "This week’s domestic stock market can be characterized by two key themes: the potential rebound of growth stocks and the continued rise of cyclical stocks." He added, "The expected weekly KOSPI range is between 3,130 and 3,250. Factors supporting the rise include the possibility of delayed tapering discussions and statements from Fed officials, while a higher-than-expected consumer price index is a potential downside risk."

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