KOSPI Continues Weakness Around '3180' Level... KOSDAQ Turns to Gains

Domestic Stock Market to Maintain Sideways Trend for the Time Being
Effective Response Strategies by Stocks and Sectors

[Image source=Yonhap News]

[Asia Economy Reporter Ji-hwan Park] On the 2nd, the KOSPI continued to trade below the '3200 level' due to simultaneous net selling by foreigners and institutions. The KOSDAQ, which had turned down in early trading, reversed to an upward trend. Experts analyzed that it will be difficult for the domestic stock market to break out of the box range for the time being, and that stock- and sector-specific responses are effective.

As of 10:44 a.m. that day, the KOSPI was at 3187.09, down 19.93 points (-0.62%) from the previous trading day. The index started at 3198.03, 8.99 points (0.28%) lower than the previous close, and continued its weakness.

By investor type, individuals were the sole net buyers with 512.9 billion KRW. In contrast, foreigners and institutions were net sellers of 346.2 billion KRW and 149.4 billion KRW, respectively.

Most of the top 10 market capitalization stocks were in decline. Major stocks such as Samsung Electronics (-0.78%), SK Hynix (-0.93%), NAVER (-0.11%), and Samsung Biologics (-1.04%) fell. KakaoBank plunged 6.87% on news of a block deal (off-hours large volume trade) of shares by the Korea Post. Samsung SDI (-4.70%) and LG Chem (-0.28%) also showed declines.

At the same time, the KOSDAQ was up 1.10 points (0.11%) at 1047.08. The index started at 1048.15, 2.17 points (0.21%) higher than the previous day, then briefly turned down but reversed back to an upward trend.

Individuals led the index with net buying of 168.9 billion KRW. Meanwhile, foreigners and institutions were net sellers of 137.2 billion KRW and 22.9 billion KRW, respectively.

Among the top 10 market capitalization stocks, performance was mixed. HL Biopharma's rise of 6.94% was the largest. Kakao Games also rose 1.63%. On the other hand, Celltrion Healthcare (-1.15%), EcoPro BM (-2.60%), and Celltrion Pharm (-1.47%) declined.

Domestic market experts expect the KOSPI to continue fluctuating within the 3000-3300 box range for the time being. It is analyzed that risk management is effective above the 3200 level, while a strategy of increasing weight is effective below the 3100 level.

Lee Kyung-min, a researcher at Daishin Securities, said, "The KOSPI faces uncertainties including worsening COVID-19 conditions, regulatory risks in China, and monetary policy uncertainties in the U.S. and Korea, compounded by semiconductor industry and earnings concerns." He emphasized, "Until a trend is confirmed, buying should increase as the index approaches the lower end of the box range and fear grows, and weight should be reduced in sectors and stocks that showed strong short-term rebounds as the index approaches the upper end of the box range and optimism increases."

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