Institutional Buying Drives KOSPI Back Above 3130... Minimal Impact from Afghanistan Situation

KOSDAQ Also Ends Mixed Trend with a Rise

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The KOSPI recovered to the 3130 level as institutions showed strong buying momentum. Although the U.S. indicated a strong response following the bombing in Afghanistan on the 26th (local time), it has not yet had a significant impact on the stock market.

On the 27th, the KOSPI closed at 3133.90, up 0.17% (5.37 points). The KOSPI, which started the day higher, showed mixed trends throughout the session, alternating between rises and falls.

Institutional buying led the index's rise. Institutions were net buyers of 731.8 billion KRW. Individuals and foreigners were net sellers of 343.7 billion KRW and 371.7 billion KRW, respectively.

Most sectors rose. The medical precision sector had the largest gain at 1.83%. This was followed by securities (1.29%), paper and wood (1.24%), textiles and apparel (1.00%), and pharmaceuticals (0.88%). Steel and metals (-0.87%), telecommunications (-0.84%), and electrical and electronics (-0.28%) declined.

Almost all of the top 10 stocks by market capitalization fell. NAVER had the largest drop at 0.83%. This was followed by Samsung Biologics (-0.73%), Hyundai Motor (-0.71%), LG Chem (-0.63%), SK Hynix (-0.48%), and Samsung Electronics (-0.40%). Celltrion (3.51%), Kakao Bank (0.48%), and Kakao (0.33%) rose. Samsung SDI remained flat.

The KOSDAQ closed at 1023.51, up 0.30% (3.07 points) from the previous day. The KOSDAQ also showed mixed trends with alternating rises and falls. It even rose to 1027.26 at 11:34 a.m. that day.

Individual buying was strong. Individuals were net buyers of 175.5 billion KRW. Foreigners and institutions were net sellers of 94.0 billion KRW and 58.6 billion KRW, respectively.

Sector indices were mixed. The non-metal sector had the largest gain at 2.81%. This was followed by construction (2.22%), chemicals (1.45%), transportation equipment and parts (1.33%), and information devices (1.24%). Digital content (-1.56%), IT software and services (-0.83%), textiles and apparel (-0.74%), transportation (-0.69%), and internet (-0.58%) declined.

The top 10 stocks by market capitalization also showed mixed results. Kakao Games had the largest drop at 5.27%. This was followed by Alteogen (-3.21%), L&F (-1.07%), SK Materials (-0.42%), and Seegene (-0.16%). HLB (1.32%), Celltrion Pharm (1.30%), Pearl Abyss (1.25%), Celltrion Healthcare (1.23%), and EcoPro BM (0.19%) rose.

[Image source=Yonhap News]

Meanwhile, the impact of the Afghanistan situation appears to be limited. At least 90 people died in a bombing near Kabul airport, the capital of Afghanistan, on the 26th. In response, U.S. President Joe Biden announced that plans are underway to attack the Islamic extremist militant group IS, which was identified as behind the Kabul airport attack, but the stock market remained steady.

Yoo Seung-min, a researcher at Samsung Securities, explained, “The Afghanistan region has significantly lower economic status compared to its geopolitical importance and is not heavily exposed to the global financial market,” adding, “Despite recent issues, the stock markets of Pakistan and India, which are geographically and religiously related, have remained stable.” He also noted, “This Afghanistan situation is also an extension of the U.S.-China hegemonic competition,” adding, “Major geopolitical issues that have been under the surface may come to the forefront.”

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