KOSPI Recovers to '2980 Level' with Simultaneous Buying by Individuals and Institutions... "Rapid Oil Price Surge is a Burden"

[Image source=Yonhap News]

[Asia Economy Reporter Ji-hwan Park] On the 14th, the domestic stock market continued its upward trend, supported by simultaneous buying by individual and institutional investors. It is interpreted that the favorable global stock market sentiment, such as the overnight U.S. stock market closing higher amid concerns over inflationary pressures and expectations for the third-quarter earnings season, influenced this trend. However, domestic market experts analyze that it is still too early for the market to gain full upward momentum as the recent sharp rise in oil prices has not stopped.

As of 10:10 a.m. on the 12th, the KOSPI was at 2,982.07, up 1.28% (37.66 points) from the previous trading day. The KOSPI started trading at 2,968.87, up 24.46 points (0.83%) from the previous day, and continued its strong trend.

The generally rising New York stock market overnight appears to have positively affected investor sentiment. The S&P 500 index, centered on large-cap stocks, closed at 4,363.80, up 13.15 points (0.30%), marking a rebound after four trading days. The tech-heavy Nasdaq closed at 14,571.64, up 105.71 points (0.73%) from the previous session. The Dow Jones Industrial Average ended flat. Although the U.S. Consumer Price Index (CPI) for September rose 5.4% year-on-year, exceeding expectations and the previous month, indicating continued inflationary pressure, most indices closed higher amid expectations for the third-quarter earnings season.

Sang-young Seo, a researcher at Mirae Asset Securities, said, "The U.S. stock market showed resilience after the White House announced efforts to address high inflation, which is positive for the Korean stock market," adding, "Some tech stocks rose on expectations of solid earnings and upward revisions to guidance, raising hopes for improved investor sentiment."

By investor type, individuals and institutions net bought 8.8 billion KRW and 93.1 billion KRW, respectively. Meanwhile, foreigners net sold 107.9 billion KRW.

Among the top 10 stocks by market capitalization, most showed gains. Samsung Electronics (1.02%), SK Hynix (2.07%), NAVER (3.14%), LG Chem (3.34%), Samsung Biologics (2.17%), Kakao (2.99%), and Samsung SDI (2.38%) showed upward trends. In contrast, Hyundai Motor and Kia were down by -0.47% and -0.12%, respectively.

At the same time, the KOSDAQ was at 975.77, up 2.34% (22.30 points) from the previous trading day. The KOSDAQ opened at 960.58, up 7.11 points (0.75%) from the previous day.

By investor type, similar to the KOSPI, individuals and institutions showed net buying of 700 million KRW and 16.6 billion KRW, respectively. Foreigners were net sellers of 13.9 billion KRW.

Among the top 10 stocks by market capitalization, there were mixed movements. Celltrion Healthcare (2.06%), EcoPro BM (2.00%), L&F (2.16%), and HL Biotech (7.86%) showed strength. In contrast, SK Materials (-0.24%) and Celltrion Pharm (-3.76%) were weak.

There is an opinion that confirming oil price stabilization is necessary for the KOSPI to gain rebound momentum. Recently, November delivery West Texas Intermediate (WTI) crude oil surpassed $80 per barrel for the first time in seven years, showing a clear upward trend in oil prices. It has risen about 30% from the August low.

Yoo-jun Choi, a researcher at Shinhan Investment Corp., explained, "The current surge in oil prices affects stocks in two ways: rising discount rates and increased cost burdens," adding, "High oil prices act as inflationary pressure, increasing the discount rate burden due to rising interest rates, and since most energy is imported by companies, cost burdens increase, which is an unfavorable factor for the domestic stock market centered on intermediate goods manufacturing."

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