KOSPI Closes at 2968 on Foreign and Institutional Buying... Impact of Eased Omicron Concerns

KOSDAQ Closes Up 2.15%... Investor Sentiment Recovers, NFT-Related Stocks Rise

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The domestic stock market rebounded, supported by buying from foreigners and institutions. This is interpreted as foreigners and institutions investing as concerns over the new COVID-19 variant virus 'Omicron' eased. As a result, non-fungible token (NFT)-related stocks began to rebound again.

On the 3rd, the KOSPI closed at 2,968.33, up 0.78% (23.06 points) from the previous day. The KOSPI, which started lower, turned upward around 11:45 a.m. It even rose to 2,975.44 at 1:45 p.m. that day.

The easing of concerns about Omicron is seen as having a positive impact on the domestic stock market. On the 2nd (local time), U.S. President Joe Biden said in a speech at the National Institutes of Health (NIH), "New quarantine measures include vaccines, booster shots, and expanded testing," adding, "Lockdown measures are not included." By stating that lockdown measures, which could lead to an economic recession, will not be implemented, market concerns were somewhat alleviated.

Labor Researcher Roh Dong-gil of NH Investment & Securities said, "There were concerns that the economy would fall into recession again due to Omicron, but such movements have not yet appeared," adding, "Although semiconductor-related stocks in the U.S. market were sluggish early in the session, leading to declines in domestic semiconductor stocks, news related to Omicron seems to have led the overall market to turn upward."

Buying by foreigners and institutions led to the index rise. Foreigners and institutions net purchased 161.3 billion KRW and 87.8 billion KRW, respectively. Individuals net sold 271.4 billion KRW.

All sectors except electrical and electronics rose. The textile and apparel sector had the largest gain at 5.31%. This was followed by telecommunications (2.35%), services (1.73%), transportation and warehousing (1.72%), and securities (1.69%).

Many of the top 10 market capitalization stocks showed strength. KakaoBank had the largest gain at 3.85%, followed by Kia (1.10%), Samsung SDI (1.02%), Samsung Biologics (0.90%), NAVER (0.88%), Kakao (0.82%), and Hyundai Motor (0.24%). SK Hynix (-1.67%), LG Chem (-1.38%), and Samsung Electronics (-0.26%) declined.

At the same time, the KOSDAQ closed at 998.47, up 2.15% (21.04 points) from the previous day. Just before the close, it recorded 998.49, rising close to the 1,000 mark.

Buying by foreigners and institutions was strong. Foreigners and institutions net purchased 161.1 billion KRW and 98.1 billion KRW, respectively. Individuals net sold 293.1 billion KRW.

All sectors rose. The digital content sector had the largest gain at 4.87%, followed by entertainment and culture (3.87%), general electrical and electronics (3.80%), IT software & services (3.72%), and medical and precision instruments (3.57%).

Most of the top 10 market capitalization stocks rose. Wemade had the largest gain at 6.64%. It is interpreted that interest in NFT-related stocks surged as investment sentiment recovered. This was followed by EcoPro BM (5.90%), Pearl Abyss (5.35%), Kakao Games (4.04%), HLB (3.14%), L&F (2.63%), Celltrion Pharm (0.41%), and Seegene (0.30%). Celltrion Healthcare fell 0.36%. SK Materials remained flat.

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