Faltering Stock Market... Battle Over KOSPI 3000 Level Continues

"KOSPI 3000 Battle to Continue for the Time Being"

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] The KOSPI index is battling around the 3000 mark during trading on the 24th. The index started above 3000, with foreigners buying for the fourth consecutive day, but it fell below 3000 during the session due to heavy selling by institutions.

As of 10:06 a.m., KOSPI is trading at 3000.09, up 2.76 points (0.09%) from the previous day. The index opened at 3006.34, up 0.3%, and early gains were driven by combined buying from foreigners and individuals, spreading expectations of a year-end rally, but momentum has weakened as the session progressed.

Foreigners continued their buying streak for the fourth day, net purchasing about 194.8 billion KRW. Individuals net bought 93.1 billion KRW, while institutions net sold approximately 285.7 billion KRW.

Most of the large-cap stocks that showed early gains turned to declines. Samsung Electronics remained flat, and SK Hynix, which initially rose over 1%, is now down 0.42%. Hyundai Motor (-0.93%), Samsung SDI (-0.81%), and Kia (-0.48%) also declined. On the other hand, Samsung Biologics (0.35%) and LG Chem (0.68%) are on the rise.

At the same time, the KOSDAQ index is down 2.47 points (0.24%) from the previous day, standing at 1101.25. KOSDAQ also started higher but turned negative about an hour after the open. Individuals and institutions are net buyers with 34.3 billion KRW and 11 billion KRW respectively, while foreigners are net sellers of about 43 billion KRW.

However, news that COVID-19 cases have surpassed 4,000 for the first time has led to strength in bio stocks. Celltrion Healthcare (+1.77%) and Celltrion Pharm (+1.32%) are rising, and Seegene, ranked 12th in KOSDAQ market cap, is up 12.07% today.

Conversely, Wemade is down more than 6%, and game stocks such as Pearl Abyss (-2.97%) and Kakao Games (-2.90%) are also declining.

Jung Yong-taek, a researcher at IBK Investment & Securities, said, "There is caution as major shareholder classification for stock transfer tax is done at year-end, and many individuals who bought above KOSPI 3000 are selling. Although the US market fell due to hawkish remarks from the Federal Reserve, the domestic market is holding up well today. However, the battle around KOSPI 3000 is expected to continue for the time being unless there is a special trigger."

Some expect a year-end rally fueled by consumption effects such as the US Black Friday. Han Ji-young, a researcher at Kiwoom Securities, said, "The background for year-end rallies varies each year depending on different market environments, but the common factor is the expectation of the US consumption season. We believe this consumption season will create a favorable atmosphere not only for the US stock market but also for the Korean stock market." She added, "It is appropriate to expand the weighting of large-cap stocks, especially in the IT sector, where momentum has recently been forming after a period of price suppression."

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