Expectations for Economic Recovery as COVID-19 Spread Slows... KOSPI Surpasses 3150

KOSDAQ Also Rises Nearly 1%
Foreigners and Institutions Continue Joint Net Buying

On the morning of the 14th, the KOSPI index is displayed in the dealing room of Hana Bank in Jung-gu, Seoul, as the market opens with a slight upward trend. [Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The KOSPI surged nearly 1% from the previous day, breaking through the 3150 mark. This appears to be due to the slowdown in the increase of COVID-19 cases, which has highlighted expectations for economic normalization. As a result, foreigners and institutions continued steady buying, driving the index upward, according to analysis.

As of 11:16 a.m. on the 14th, the KOSPI recorded 3155.48, up 0.88% from the previous day. After a firm start at 3137.32, the upward momentum gradually increased.

Overnight, despite political uncertainties such as corporate tax hikes, the U.S. stock market closed mixed but showed resilience. Domestically, the slowdown in COVID-19 case increases and the rise in vaccination rates have boosted expectations for economic normalization. Park Gwangnam, head of the Digital Research Team at Mirae Asset Securities, explained, "COVID-19 cases remained around 1,400, and the vaccination rate rose to 66%, creating a growing atmosphere of optimism for economic normalization. The fact that vaccine-related sectors paused while sectors related to economic reopening showed strength is consistent with this context."

Simultaneous buying by foreigners and institutions was also observed. As of the same time this morning, foreigners and institutions net purchased 227 billion KRW and 542.5 billion KRW, respectively. Individuals net sold 756.8 billion KRW. Park said, "The sustained net selling by foreigners last month has clearly slowed this month. If the market closes with foreigners net buying today, a trend reversal could be expected going forward."

Most sectors showed gains. Banks (3.03%), transportation and warehousing (2.44%), transportation equipment (2.36%), and construction (1.64%) led the increases. Steel and metals (-1.47%), textiles and apparel (-1.13%), and non-metallic minerals (-0.60%) declined.

The KOSDAQ also rose 0.91% from the previous day to 1035.63. After a firm opening at 1029.57, the upward trend continued steadily. The supply-demand dynamics differed from the KOSPI. Foreigners and individuals net purchased 38.7 billion KRW and 34.1 billion KRW, respectively, while institutions net sold 57.9 billion KRW.

However, most sectors also rose. General electrical and electronics (3.12%), digital content (2.78%), and textiles and apparel (2.48%) led the gains. Only paper and wood (-0.74%), transportation (-0.58%), and metals (-0.40%) declined.

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