KOSPI and KOSDAQ Struggle to Maintain Uptrend... Market Concentration Poses Burden on Stock Market

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] The KOSPI and KOSDAQ indices continue to maintain an upward trend.

As of 10:36 AM on the 19th, the KOSPI is at 2950.66, up 0.11% from the previous trading day, and the KOSDAQ is at 1038.87, up 0.59%. The indices are maintaining only a slight upward momentum. At one point during the session, the KOSPI rose to the 2970 level but lost strength due to foreign investors turning to net selling.

Individual investors are the only ones showing net buying. They are purchasing 63.3 billion KRW and 69.6 billion KRW in the KOSPI and KOSDAQ markets, respectively. Foreign investors, who were net buyers early in the session, are currently net sellers by approximately 1.4 billion KRW and 31.6 billion KRW, respectively. Institutions have been net sellers since the market opened, with net sales of about 73.3 billion KRW and 34.7 billion KRW, respectively.

The strong sectors in the KOSPI are pharmaceuticals (+1.75%), transportation equipment (+1.07%), and steel and metals (+0.86%), while the weak sectors are construction (-1.11%), textiles and apparel (-0.98%), and machinery (-0.86%). From a supply and demand perspective, telecommunications show a selling dominance with a ratio of 51:49, while electric and gas utilities record a buying dominance at 31:69. The strong sectors in the KOSDAQ are broadcasting services (+3.20%), telecommunications services (+2.48%), and semiconductors (+2.28%), whereas the weak sectors are entertainment and culture (-1.36%), digital content (-1.11%), and finance (-0.91%).

Seo Sang-young, a researcher at Mirae Asset Securities, explained, "The concentrated rise in certain stocks in the U.S. market is a burden on the Korean market, but the weak dollar and the stable rise in international oil prices are positive factors," adding, "A stock market trend focused on individual stocks is expected to unfold."

Meanwhile, domestic autonomous driving-related companies' stocks are soaring following news that Apple plans to launch a self-driving car in 2025. Besides LG Electronics, Infobank, Mobile Appliance, and Obigo were identified as beneficiary stocks.

Earlier, Bloomberg reported on the 18th (local time) that Apple has internally accelerated its development schedule, which was originally set for 5 to 7 years later, aiming to release a self-driving car in 4 years, in 2025.

According to the report, the ‘Apple Car’ will have no steering wheel or accelerator, and passengers will be able to sit facing each other. It will also feature a large touchscreen using an iPad for infotainment.

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