Exploring Upward Trends Before Economic Indicator Review... Domestic Stock Market Fluctuates Within a Narrow Range

[Asia Economy Reporter Lee Seon-ae] On the 31st, the domestic stock market, which started higher, is moving within a narrow range amid fluctuations.

As of 1:40 PM, the KOSPI is down 0.05% at 3187.02. The KOSPI opened at 3192.06 (up 0.1%, +3.33 points). The KOSDAQ is up 0.27% at 980.10, having started the session at 979.00 (up 0.16%, +1.54 points).

While individual investors are solely taking buying positions, foreigners and institutions are showing simultaneous selling pressure. Individuals are buying 506.6 billion KRW in the KOSPI market and 66.4 billion KRW in the KOSDAQ market. Foreigners are net buyers with 78.7 billion KRW in the KOSPI market and 3.7 billion KRW in the KOSDAQ market. Institutions are selling 584.9 billion KRW and 51.2 billion KRW in the two markets, respectively.

By sector in the KOSPI, the food and beverage, construction, and machinery industries are showing strength, while steel and metal, non-metallic minerals, and transportation and warehousing sectors are declining.

In the KOSDAQ sectors, broadcasting services, telecommunications equipment, and entertainment and culture industries are strong, whereas paper and wood, and machinery and equipment sectors are weakening.

Yuanta Securities forecasted, "This week, the Korean stock market’s direction will be determined by the impact of somewhat eased inflationary pressures, as confirmed by economic indicators such as Korea’s May export data to be released on June 1 and the upcoming PMI releases from major countries."

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

Researcher Chae Hyun-gi of Cape Investment & Securities advised, "As expectations for economic reopening continue with expanded vaccination rates this week, interest in consumer discretionary sectors (such as cosmetics) will persist. Given the anticipated strong May export figures, buying in the automobile sector, which has a high export ratio among consumer discretionary stocks, is also valid. Additionally, from a mid- to long-term perspective through the second half of the year, there are opportunities for bargain buying in growth sectors such as semiconductors."

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