"Clear Recovery Trend in Korean Economy" Amid Institutional Betting... KOSPI Rises for Three Consecutive Days (Comprehensive)

[Asia Economy Reporter Ji Yeon-jin] On the 1st, the domestic stock market continued its upward trend as news of improvements in the Korean economy followed one after another. In the KOSPI market, institutions absorbed the sell orders from individuals and foreigners with net buying, while in the KOSDAQ, Donghak Ants led the index rise.

The KOSPI index closed at 3,221.87, up 17.95 points (0.54%) from the previous day. Individuals sold stocks worth 613.6 billion KRW and foreigners sold 35.5 billion KRW, but institutions led the index by net buying about 653 billion KRW.

The KOSPI started the day on an upward trend after the Organization for Economic Cooperation and Development (OECD) raised its forecast for Korea's economic growth rate this year by 0.5 percentage points to 3.8% in just two months. Additionally, the export growth rate last month exceeded 45%, marking the highest level in 32 years, which analysts say contributed to the stock price rise. Lee Kyung-min, head of investment strategy at Daishin Securities, explained, "The OECD's upward revision of Korea's economic growth rate and the rise in China's PMI (Purchasing Managers' Index) have strengthened the economic recovery."

On the day, stocks with clear earnings improvements saw significant price jumps on the KOSPI. Daewoo Shipbuilding & Marine Engineering surged nearly 10% (9.94%), and Hyundai Mipo Dockyard (5.56%) and Samsung Heavy Industries (5.29%) also showed strong performance amid expectations of rapid earnings improvement due to the global economic recovery this year.

Among the top 10 market capitalization stocks, Kakao jumped 3.25% from the previous day, while Naver (NAVER, 1.24%) and SK Hynix (1.18%) also closed higher. LG Chem showed a flat trend during the day but rose 0.73% at the end, and Hyundai Motor and Samsung SDI rebounded in the afternoon, rising 0.85% and 0.16%, respectively.

On the other hand, Samsung Biologics (-1.53%) and Celltrion (-0.73%) showed weakness.

The KOSDAQ index recorded 984.59, up 2.81 points (0.29%) from the previous day. Individuals net bought about 98.2 billion KRW, while foreigners and institutions net sold 16.9 billion KRW and 71.4 billion KRW, respectively. The KOSDAQ started the day rising, repeatedly switched to decline, but expanded its gains in the afternoon.

Among the top market capitalization stocks, HL Biotech rose more than 4%, and Kakao Games (0.38%), EcoPro BM (-0.51%), and Seegene (0.89%) also recorded gains. CJ ENM and SK Materials, which fluctuated during the session, closed up 0.06% and 0.12%, respectively. Conversely, Celltrion Healthcare (-0.99%), Celltrion Pharm (-0.22%), and Pearl Abyss (-1.49%) showed weakness.

Korea's exports in May, announced on the day, amounted to 50.7 billion USD, an increase of 45.6% compared to the previous year. This is the highest growth rate in 32 years. Semiconductors (+24.5%) surpassed 10 billion USD in export value for the first time since 2018, and automobiles (+93.7%) recorded the highest export value since 2016 despite supply chain disruptions caused by a shortage of vehicle semiconductors.

Petroleum products (+164.1%) and petrochemicals (+94.9%) also continued significant growth due to rising oil prices and demand recovery. Jeong Yeo-kyung, a researcher at NH Investment & Securities, explained, "In particular, petroleum products are noteworthy due to increased travel demand in developed countries following vaccine distribution," adding, "As airlines increase routes, demand for transport petroleum products such as jet fuel has risen."

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