The Bank of Korea Holds Steady Ahead of Monetary Policy Meeting... KOSPI Battles Around 3000 Level Continue

KOSDAQ Recovers After Early Morning Weakness

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] On the 24th, the domestic stock market closed mixed. The KOSPI recorded a decline for the second consecutive day amid fierce battles around the 3000-point mark, while the KOSDAQ succeeded in rebounding.

The KOSPI index closed at 2994.29, down 3.04 points (0.10%) from the previous day. Foreign investors continued their buying spree for the fourth consecutive day, net purchasing about 317.4 billion KRW, and individuals also net purchased about 240.1 billion KRW.

The index initially rose above 3000 in early trading but turned downward during the morning session due to a flood of selling by institutions. Institutions net sold about 592 billion KRW that day. The index fell to the 2980 level in the afternoon but recovered close to 3000 just before the close as institutional selling slowed.

Jung Yong-taek, a researcher at IBK Investment & Securities, said, "There is caution as the classification of major shareholders for stock transfer tax imposition will be made at the end of the year, and since individuals who bought above 3000 on the KOSPI are selling, the battle around 3000 will likely continue for the time being unless there is a special trigger."

Among the top market capitalization stocks on the KOSPI, SK Hynix (+0.42%) and LG Chem (+0.95%) showed gains, while the others recorded declines. Samsung Electronics (-0.66%) showed a strong rise of over 1% in early trading but then turned downward and fell to 74,800 KRW. Naver (NAVER, +1.25%) and Hyundai Motor (-1.40%) also recorded declines.

The KOSDAQ index rose 6.41 points (0.63%) to 1020.13. While individuals net sold about 102.5 billion KRW, foreign investors and institutions net purchased about 82.5 billion KRW and 30.9 billion KRW respectively.

Most of the top market capitalization stocks on the KOSDAQ showed gains. Celltrion Healthcare (+0.24%) experienced a rollercoaster day. It showed strength early in the session due to an increase in COVID-19 cases but turned downward during the session; however, it ended up rising as foreign buying surged toward the close. Additionally, SK Materials rose more than 6%, and secondary battery-related stocks such as EcoPro BM (+2.21%) and L&F (+5.52%) also showed upward trends.

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "The KOSDAQ fell nearly 1% in the morning but narrowed losses and turned upward during the session as rebound buying increased in sectors like secondary batteries. The market appears to be maintaining a wait-and-see attitude ahead of tomorrow’s Bank of Korea Monetary Policy Committee meeting."

Meanwhile, the telecommunications equipment sector on the KOSDAQ, including Solid (+9.36%) and KMw (+4.78%), showed strength due to expectations of increased 5G infrastructure demand driven by the recent metaverse boom.

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