KOSPI Narrows Gains, Records 3170 Level... "Focus on Social Distancing Easing Momentum"

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] The KOSPI is showing an upward trend, supported by purchases from foreigners and institutions. After attempting a rebound for the first time in three trading days, the index recovered the 3180 level during the session before the gains somewhat narrowed. The KOSDAQ also showed an increase for the fourth consecutive day.

As of 10:26 AM on the 28th, the KOSPI stood at 3175.71, up 0.32% (10.20 points) from the previous trading day. The index opened at 3172.09, up 0.21% (6.58 points) from the previous day, and recovered the 3180 level during the session.

By investor type, foreigners and institutions bought stocks worth 40.8 billion KRW and 136.5 billion KRW, respectively. In contrast, individuals sold stocks worth 184.5 billion KRW alone.

Among the top 10 stocks by market capitalization, there were mixed movements. Samsung Electronics (0.13%) and LG Chem (1.87%) rose, while SK Hynix (-1.20%), NAVER (-0.456%), and Kakao (-3.20%) declined. Additionally, Namyang Dairy Products surged to the daily upper limit after news of a management rights sale.

At the same time, the KOSDAQ was at 975.41, up 0.14% (1.33 points) from the previous trading day. The index opened at 974.55, up 0.05% (0.47 points) from the previous day.

By investor type, foreigners and institutions sold stocks worth 81.5 billion KRW and 21.3 billion KRW, respectively. Individuals were the sole net buyers with 109.6 billion KRW.

Among the top 10 stocks by market capitalization, most stocks rose except for Celltrion Healthcare (-3.17%). Celltrion Pharm (1.42%), EcoPro BM (0.51%), Kakao Games (0.58%), and Pearl Abyss (0.51%) all increased.

Domestic market experts advise that an investment portfolio strategy focusing on consumer discretionary sectors will be effective going forward. It is expected that momentum will shift toward consumer discretionary stocks due to the easing of social distancing policies following the vaccine rollout, which is likely to begin in July.

Kim Daejun, a researcher at Korea Investment & Securities, said, "Compared to the materials and energy sectors that have led the cyclical style so far, consumer discretionary stocks are currently rising. Even looking at sectoral returns this week, hotel leisure, cosmetics, and distribution sectors recorded relative strength compared to the index, and it is time to gradually pay attention to consumer discretionary stocks."

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