Individual Investors Solely Net Buyers... Volatile Market Expected Amid Tapering Concerns

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 31st, the domestic stock market started with gains and is showing slight fluctuations. Only individual investors are net buyers in both the KOSPI and KOSDAQ markets.

As of 9:13 AM, the KOSPI is at 3,181.66, down 0.22% from the previous day. The KOSPI opened at 3,192.06 (up 0.1%, +3.33 points). The KOSDAQ is at 979.92, up 0.25%. It started the session at 979.00 (up 0.16%, +1.54 points).

While individuals are solely taking buying positions, foreigners and institutions are showing simultaneous selling pressure. Individuals are purchasing 167.8 billion KRW in the KOSPI market and 30.6 billion KRW in the KOSDAQ market. Foreigners have a selling bias of 61.6 billion KRW and 17.5 billion KRW respectively. Institutions are also net sellers with 107.8 billion KRW and 10.4 billion KRW.

By sector in the KOSPI, telecommunications (+0.28%), transportation and warehousing (+0.25%), and steel and metals (+0.20%) are showing strength, while chemicals (-0.03%) and non-metallic minerals (-0.02%) are declining.

By sector in the KOSDAQ, broadcasting services (+0.59%), chemicals (+0.37%), and telecommunications equipment (+0.33%) are strong, whereas IT services (-0.05%) and internet (-0.02%) are weakening.

Meanwhile, the domestic stock market in June is expected to continue a volatile trend amid rising COVID-19 vaccination rates and expectations for improved corporate earnings, despite ongoing concerns over U.S. tapering (gradual reduction of quantitative easing) and weakened investor sentiment.

Key domestic and international events to watch include China's May manufacturing PMI release on the 31st, South Korea's May export-import trends and the U.S. ISM manufacturing index release on June 1st, and South Korea's May consumer price index announcement on June 2nd.

Researchers Kim Dae-jun and Kim Sung-geun from Korea Investment & Securities explained, "Since the KOSPI growth rate and export growth rate have mostly shown the same direction, the increase in May exports is likely to be a favorable factor for the domestic stock market. As figures for consumer-related items such as automobiles and home appliances are improving, it is necessary to observe whether the export boom can lead to a stock price rebound."

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