US Stock Market's Largest Impact Ever... KOSPI Recovers to 2980 Level

All Three Major US Indexes Hit Record Highs
KOSDAQ Approaches 1,000 Mark on Institutional Buying Surge

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The KOSPI is showing a firm slight rise in the early session, supported by institutional buying. The strong performance of the three major U.S. indices, which have reached record highs, is interpreted as having a positive impact on the domestic stock market as well.

As of 11:01 a.m. on the 1st, the KOSPI recorded 2,984.19, up 0.45% (13.51 points) from the previous trading day. It even rose to 2,991.81 at 10:24 a.m. that day.

The strong U.S. stock market momentum is also extending to the domestic market. On the 29th of last month (local time), all three major U.S. indices closed at record highs. The Dow Jones Industrial Average closed at 35,819.56, up 0.25% (89.08 points) from the previous day. The S&P 500 rose 0.19% (8.96 points) to 4,605.38, and the Nasdaq closed at 15,498.39, up 0.33% (50.27 points).

Sangyoung Seo, a researcher at Mirae Asset Securities, explained, “Despite adverse factors such as supply chain issues and high inflation, U.S. companies have reportedly endured well, leading to a rebound buying trend. Although concerns about a global economic slowdown remain, news that the Group of Twenty (G20) summit will actively respond to related issues also had a positive effect.”

Institutional buying is strong. Institutions net purchased 321.7 billion KRW. Individuals and foreigners net sold 106.3 billion KRW and 205.9 billion KRW, respectively.

Most sectors rose. The banking sector showed the largest gain at 1.11%. This was followed by pharmaceuticals (1.09%), medical precision instruments (1.06%), construction (0.93%), and transportation and warehousing (0.88%). Sectors that declined included textiles and apparel (-0.42%), electric and gas utilities (-0.41%), paper and wood (-0.31%), and chemicals (-0.09%).

Many of the top 10 market capitalization stocks showed strength. SK Hynix led with a 3.40% increase. This was followed by KakaoBank (1.27%), Samsung Biologics (1.03%), Samsung Electronics (0.86%), and NAVER (0.37%). Samsung SDI (-1.77%) and Kia (-0.35%) declined. LG Chem, Kakao, and Hyundai Motor remained flat.

At the same time, the KOSDAQ recorded 998.18, up 0.59% (5.85 points) from the previous trading day. It also rose to 999.67 at 9:57 a.m. that day.

Institutional buying led to the index rise. Institutions net purchased 57.8 billion KRW. Individuals and foreigners net sold 33.9 billion KRW and 8.2 billion KRW, respectively.

Many sectors showed gains. Publishing and media reproduction led with a 3.45% increase. This was followed by digital content (2.73%), IT software & services (2.09%), pharmaceuticals (1.79%), and other services (1.50%). Sectors that declined included textiles and apparel (-1.63%), paper and wood (-1.59%), general electrical and electronics (-1.31%), IT components (-1.05%), and finance (-0.94%).

Many of the top 10 market capitalization stocks rose. Pearl Abyss led with a 5.10% increase. This was followed by HL Biopharma (3.33%), Celltrion Pharm (1.85%), Celltrion Healthcare (1.73%), Kakao Games (0.25%), and Wemade (0.05%). EcoPro BM (-1.93%), SK Materials (-0.84%), CJ ENM (-0.11%), and L&F (-0.05%) declined.

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