Improving Investment Sentiment... KOSPI Surpasses 3310 Level Intraday

International Oil Prices Rise Due to Sudden Cancellation of OPEC+ Meeting
KOSDAQ Continues Uptrend

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] Ahead of the earnings season, investment sentiment is improving due to factors such as the rise in international oil prices. The KOSPI surpassed the 3310 level during the session.

As of 11:08 a.m. on the 6th, the KOSPI recorded 3309.55, up 0.50% (16.34 points) compared to the previous trading day. It even rose to 3312.26 at 10:54 a.m. that day.

Positive factors continue to be reflected in the improvement of investment sentiment. The upward trend from the previous day following the U.S. employment report results seems to be continuing. Seo Sang-young, a researcher at Mirae Asset Securities, explained, “With major events concluded and the full-scale earnings season approaching, buying interest is flowing mainly into stocks with high expectations for earnings improvement,” adding, “Due to expectations of economic normalization, cyclical stocks are showing strength.”

Additionally, the sudden cancellation of the OPEC Plus (OPEC+) meeting, which included the Organization of the Petroleum Exporting Countries (OPEC) and major non-OPEC oil-producing countries such as Russia, also acted as a positive factor. Researcher Seo said, “International oil prices rose after the OPEC+ meeting was canceled,” and added, “The weak dollar, the UK’s announcement of the end of economic lockdown, and solid European service sector Purchasing Managers' Index (PMI) also positively influenced investment sentiment.”

Foreigners and institutions showed strong buying momentum. On that day, foreigners and institutions net purchased 86 billion KRW and 173.7 billion KRW, respectively. Individuals net sold 262.4 billion KRW.

Most sectors showed gains. The machinery sector had the largest increase at 1.79%. This was followed by electrical and electronics (1.11%), textiles and apparel (0.92%), chemicals (0.70%), and distribution (0.67%). Pharmaceuticals (-1.90%), transportation and warehousing (-0.44%), and steel and metals (-0.23%) declined.

Almost all of the top 10 stocks by market capitalization rose. Samsung SDI had the largest gain at 2.63%, followed by SK Hynix (2.03%), Samsung Electronics (0.75%), Kia (0.56%), Kakao (0.32%), Hyundai Motor (0.21%), NAVER (0.12%), and LG Chem (0.11%). Celltrion (-1.83%) and Samsung Biologics (-0.92%) fell.

At the same time, the KOSDAQ recorded 1048.57, up 0.12% (1.24 points) from the previous trading day. Although it initially turned downward in the early session, it showed an upward trend again. It even rose to 1048.71 at 11:07 a.m.

Individual investors’ buying led to the index’s rise. Individuals net purchased 74.6 billion KRW. Foreigners and institutions net sold 47.9 billion KRW and 22.6 billion KRW, respectively.

Sector indices were mixed. The semiconductor sector had the largest gain at 1.23%, followed by construction (0.90%), IT hardware (0.93%), telecommunication services (0.85%), computer services (0.65%), and telecommunication equipment (0.62%). Transportation (-1.08%), pharmaceuticals (-0.65%), digital content (-0.64%), textiles and apparel (-0.58%), and internet (-0.50%) declined.

Many of the top 10 stocks by market capitalization showed weakness. Pearl Abyss had the largest drop at 4.09%, followed by Seegene (-3.65%), Celltrion Healthcare (-1.37%), Celltrion Pharm (-1.25%), CJ ENM (-0.79%), and Alteogen (-0.10%). SK Materials (5.17%), HL B (0.44%), EcoPro BM (0.28%), and Kakao Games (0.13%) rose.

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