Decreasing Impact of COVID-19... KOSPI and KOSDAQ Turn to Gains

Bank of Korea Maintains 4% Economic Growth Rate This Year
KOSPI Shows Slight Strength Amid Institutional Buying Pressure

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The KOSPI and KOSDAQ, which started off declining, have turned to rise. Despite the spread of the COVID-19 Delta variant, the stock market appears to have rebounded as its impact on the domestic economy is not significant.

As of 11:27 a.m. on the 27th, the KOSPI recorded 3,140.11, up 0.37% (11.58 points) compared to the previous day. The KOSPI, which started off declining that day, turned to rise around 10:35 a.m.

The stock market seems to have rebounded as the impact of COVID-19 on the economy has diminished. Although the spread of the COVID-19 Delta variant continues, the vaccination rate for at least one dose has exceeded 50%. Additionally, there is talk of transitioning to With-Corona, focusing more on managing severe cases rather than suppressing confirmed cases.

Accordingly, the Bank of Korea raised the base interest rate from 0.50% to 0.75% and maintained its economic growth forecast for this year at 4.0%. Kim Yeon-jin, a researcher at Eugene Investment & Securities, explained, "The impact of the COVID-19 resurgence on the economy was smaller than expected, making this rate hike possible," and added, "Private consumption in the fourth quarter is also expected to gradually improve due to expanded vaccination and the government's supplementary budget execution."

Institutional investors showed strong buying momentum. On that day, institutions net purchased 405.3 billion KRW. Individuals and foreigners net sold 204.5 billion KRW and 181.4 billion KRW, respectively.

Almost all sectors rose. The medical precision sector had the largest increase at 1.87%, followed by textiles and apparel (1.47%), securities (1.36%), machinery (1.08%), and construction (1.01%). Steel and metals (-0.67%) and telecommunications (-0.19%) declined.

Many of the top 10 market capitalization stocks showed weakness. LG Chem had the largest drop at 2.16%, followed by Hyundai Motor (-0.95%), SK Hynix (-0.48%), Kakao (-0.33%), NAVER (-0.24%), and Samsung Biologics (-0.10%). Celltrion (3.34%), Samsung Electronics (0.27%), Samsung SDI (0.26%), and Kakao Bank (0.12%) rose.

At the same time, the KOSDAQ recorded 1,026.08, up 0.55% (5.64 points) compared to the previous day. It had fallen to 1,014.10 at 9:05 a.m. The KOSDAQ, which also started off declining, turned to rise around 10:17 a.m.

Individual buying led to the index's rise. Individuals net purchased 139.1 billion KRW. Foreigners and institutions net sold 68.4 billion KRW and 56.8 billion KRW, respectively.

Most sectors rose. Construction had the largest increase at 1.52%, followed by chemicals (1.44%), paper and wood (1.43%), non-metallic minerals (1.30%), and machinery and equipment (1.16%). Transportation (-0.94%), internet (-0.53%), digital content (-0.17%), publishing and reproduction (-0.13%), and IT software and services (-0.12%) declined.

The top 10 market capitalization stocks showed mixed results. Kakao Games had the largest drop at 4.68%, followed by Alteogen (-1.19%), L&F (-0.89%), HLB (-0.38%), and SK Materials (-0.35%). Pearl Abyss (6.71%), Seegene (1.25%), Celltrion Pharm (1.18%), Celltrion Healthcare (1.15%), and EcoPro BM (0.90%) rose.

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