Buoyed by Positive External Factors, KOSPI and KOSDAQ Rebound... Start with Gains

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 7th, the domestic stock market started with a rise. The domestic stock market, which had plummeted to a level threatening the year's low on the previous trading day, appears to have rebounded thanks to external positive factors such as the easing of uncertainty over the US debt ceiling and relief from the burden of soaring inflation.

On that day, the KOSPI opened the session at 2,936.87, up 28.56 points (0.98%). The KOSDAQ started at 932.65, up 10.29 points (1.12%).

Looking at the KOSPI investor trends, institutions are the only ones taking a buying position. In contrast, individuals and foreigners are showing a selling trend together. Institutions are net buying 46.1 billion KRW, while individuals and foreigners are net selling 10.7 billion KRW and 36 billion KRW, respectively. By sector, service industry (+1.52%), machinery (+1.47%), and transportation and warehousing (+1.45%) are showing strength, while electricity and gas (-0.48%) are declining.

In the case of KOSDAQ, individuals are the only ones taking a buying position, while foreigners and institutions are both selling. Individuals are net buying 24.8 billion KRW, while foreigners and institutions are net selling 12.4 billion KRW and 5.7 billion KRW, respectively. By sector, digital content (+2.04%), finance (+1.99%), and paper and wood (+1.55%) are showing strength.

Seo Sang-young, a researcher at Mirae Asset Securities, said, "Despite the contraction of economic momentum in the US stock market, the recent rebound buying following the decline, the easing of US political uncertainty, and expectations for a summit between the US and China are expected to have a positive impact." He added, "Considering this, the domestic stock market on the 7th is expected to start with a rise and then show limited fluctuations. If the won-dollar exchange rate, which exceeded 1,190 won, stabilizes, the rise could expand, so attention should be paid to related trends."

Han Ji-young, a researcher at Kiwoom Securities, said, "Concerns about the resumption of US-China trade conflicts have recently been a factor of market instability, but the news of a virtual summit between Biden and Xi Jinping within the year is expected to alleviate this." She added, "However, since the market plunged sharply in a short period on the previous trading day, caution is needed regarding increased price volatility due to the release of short-selling forced liquidation orders in the early session."

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