KOSPI Struggles to Hold 3000 Level... Cautious Stance Ahead of Corporate Earnings Announcements

KOSDAQ Surpasses 1000 Intraday... But Closes Lower Eventually

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The KOSPI barely held onto the 3000 mark. During the session, the KOSPI fluctuated slightly around the 3000 level, showing a mixed trend ahead of corporate earnings announcements.

On the 22nd, the KOSPI closed at 3006.16, down 0.04% (1.17 points) from the previous day. It had risen to as high as 3018.70 at 12:30 PM but fell to 2998.77 two hours later, dipping below the 3000 mark.

This is interpreted as a cautious stance ahead of earnings reports from major U.S. stocks and domestic companies. While Tesla in the U.S. and NAVER in Korea have posted strong results, the market could be shaken by the upcoming earnings of other companies. Seosangyoung, a researcher at Mirae Asset Securities, explained, “It is necessary to pay attention to intraday volatility by individual stocks.”

Additionally, issues remain regarding the U.S. Biden administration’s infrastructure investment bill and tapering of asset purchases. Next week, the U.S. Congress is scheduled to vote on the infrastructure investment bill. On November 3 (local time), the Federal Open Market Committee (FOMC) will announce its decision on tapering asset purchases. Kim Young-hwan, a researcher at NH Investment & Securities, said, “Tapering is not essentially a policy to withdraw liquidity,” but added, “There will likely be a one-time increase in financial market volatility at the time of actual tapering.”

Meanwhile, selling pressure from individuals and foreigners led to the index decline. Individuals and foreigners sold a net 67.3 billion KRW and 108.3 billion KRW, respectively. Institutions bought a net 184.9 billion KRW.

Most sectors declined. The steel and metal sector saw the largest drop at 2.00%. This was followed by electricity and gas (-1.95%), non-metallic minerals (-1.81%), transportation and warehousing (-1.13%), and machinery (-1.02%). On the upside were paper and wood (3.81%), telecommunications (2.50%), medical precision instruments (1.83%), pharmaceuticals (0.89%), and electrical and electronics (0.54%).

Many of the top 10 market capitalization stocks showed strength. SK Hynix led with a 2.28% increase, followed by Samsung SDI (1.94%), LG Chem (1.49%), Samsung Biologics (1.38%), Celltrion (0.92%), and Samsung Electronics (0.28%). NAVER (-0.73%), Kakao (-0.39%), and Kia (-0.24%) declined. Hyundai Motor remained flat.

The KOSDAQ closed at 995.07, up 0.14% (1.37 points) from the previous day. It briefly recovered above 1000, reaching 1000.15 at 1:09 PM.

Foreigners showed strong buying. They purchased a net 152.1 billion KRW. Individuals and institutions sold a net 114.7 billion KRW and 21.0 billion KRW, respectively.

Sector indices were mixed. Publishing and media reproduction and broadcasting services rose the most at 1.37%, followed by entertainment and culture (1.18%), telecommunications and broadcasting services (1.07%), internet (0.79%), and software (0.62%). Decliners included information devices (-1.38%), paper and wood (-1.23%), metals (-1.10%), transportation equipment and parts (-1.01%), and finance (-0.87%).

Many of the top 10 market cap stocks showed strength. Kakao Games led with a 4.70% increase, followed by CJ ENM (2.26%), Celltrion Healthcare (0.92%), Celltrion Pharm (0.91%), EcoPro BM (0.41%), and SK Materials (0.28%). Wemade (-3.47%), HLB (-2.08%), L&F (-1.47%), and Pearl Abyss (-0.47%) declined.

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