Despite COVID-19 Resurgence... KOSPI Closes Higher on US Stock Market Optimism

KOSPI Surpasses 3300 Intraday
KOSDAQ Closes Up 0.73%... Foreigners and Institutions 'Buy'

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] Despite growing concerns over the resurgence of COVID-19, the KOSPI closed higher due to optimistic sentiment in the U.S. stock market. Foreign investors and institutions led the KOSDAQ's upward trend.

On the 30th, the KOSPI closed at 3,296.68, up 0.30% (10.00 points) from the previous trading day. It even rose to 3,305.73 at 2:14 p.m. but failed to close above the 3,300 level.

Concerns are mounting as the COVID-19 resurgence becomes apparent. The Central Disease Control Headquarters (CDCH) announced that the number of new COVID-19 cases recorded the previous day was 794. This is the first time since the 5th that the number of confirmed cases has been in the 700s. The CDCH stated, "If the number of confirmed cases increases to meet the criteria for raising the alert level, we plan to promptly adjust the social distancing measures."

However, optimism seems to be flowing into the stock market as the U.S. Consumer Confidence Index showed improvement. The June U.S. Consumer Confidence Index recorded 127.3, exceeding the expected 119.0. Specifically, the current situation index rose from 148.7 to 157.7, and the expectations index was revised upward from 100.9 to 107.0. Seo Sang-young, a researcher at Mirae Asset Securities, explained, "It is true that there are concerns around the stock market, such as Federal Reserve Board member Waller mentioning the possibility of a rate hike next year. However, the expectation for economic improvement appears to be stronger."

Individual investors showed relatively strong buying power. On this day, individuals were net buyers of 28.4 billion KRW. Foreigners and institutions were net sellers of 4.6 billion KRW and 52.9 billion KRW, respectively.

Most sectors rose. The service sector had the largest gain at 1.18%, followed by paper and wood (1.11%), chemicals (0.58%), medical precision (0.42%), and electrical and electronics (0.33%). Telecommunications (-0.61%), machinery (-0.36%), distribution (-0.31%), non-metallic minerals (-0.29%), and securities (-0.19%) declined.

Almost all of the top 10 stocks by market capitalization rose. Kakao had the largest increase at 3.16%, followed by SK Hynix (2.00%), Samsung SDI (1.75%), NAVER (1.46%), Celltrion (1.32%), LG Chem (1.31%), and Kia (0.11%). Samsung Biologics (-0.59%) and Samsung Electronics (-0.37%) declined. Hyundai Motor remained flat.

The KOSDAQ closed at 1,029.96, up 0.73% (7.44 points) from the previous trading day. It also rose to 1,030.94 at 2:13 p.m.

Buying by foreigners and institutions led to the index's rise. On this day, foreigners and institutions were net buyers of 78.2 billion KRW and 52.8 billion KRW, respectively. Individuals were net sellers of 115.5 billion KRW.

Most sectors showed strength. The paper and wood sector had the largest gain at 2.84%, followed by pharmaceuticals (1.46%), internet (1.44%), software (1.24%), and machinery and equipment (0.96%). Financials (-0.41%), non-metallics (-0.40%), and computer services (-0.13%) declined.

All of the top 10 stocks by market capitalization, except Kakao Games and SK Materials, rose. Alteogen had the largest increase at 2.07%, followed by CJ ENM (1.78%), Pearl Abyss (1.75%), HLB (1.67%), Celltrion Pharm (1.35%), Seegene (1.35%), EcoPro BM (1.34%), and Celltrion Healthcare (0.43%). Kakao Games fell 3.18%. SK Materials remained flat.

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