The Quiet 'Four Witches' and Omicron 'Concerns Eased'

KOSPI Closes Higher

[Asia Economy Reporter Hwang Junho] On the 9th, despite it being Quadruple Witching Day (the simultaneous expiration of futures and options), the KOSPI closed higher. The rollover of futures by foreign investors continued, having little impact on the stock market. As concerns over the COVID-19 variant Omicron eased, the market comfortably maintained the 3000 level.

On that day, the KOSPI closed at 3029.57, up 0.93% (27.77 points) from the previous session. Institutions supported the market's upward momentum with net purchases worth 621.1 billion KRW. Meanwhile, with the KOSPI rising for seven consecutive trading days, individual investors realized profits amounting to 291.5 billion KRW. Foreign investors also conducted net sales worth 146.8 billion KRW.

Among all stocks, 655 rose while 187 fell. Samsung Electronics closed at 78,200 KRW, up 1.03%. Foreign net buying drove the stock to a 1% gain. Similarly, foreign buying surged in the semiconductor stock SK Hynix, which closed at 123,500 KRW, up 2.92% from the previous session. Additionally, NAVER (1.14%), Samsung Biologics (0.22%), Kakao (1.24%), and Kia (1.08%) also maintained upward trends.

By sector, services (1.35%), machinery (1.33%), transportation and warehousing (1.31%), non-metallic minerals (0.31%), and distribution (0.31%) stood out. In the services sector, Galaxia SM rose 18.87%, and NHN jumped 10.20%.

Lee Kyung-min, a researcher at Daishin Securities, said, "By sector, gaming, entertainment, healthcare, machinery equipment, transportation, apparel, and automobiles attempted rebounds," adding, "In this technical rebound phase, rotation trading is progressing rapidly."

The KOSDAQ closed at 1022.87, up 1.67% from the previous session. Institutions and foreign investors bought 242 billion KRW and 39 billion KRW respectively, while individuals realized profits worth 269.5 billion KRW, resulting in a significant rise. Among the top market cap stocks, gaming stocks stood out. Pearl Abyss closed at 131,200 KRW, up 7.01%, and Wemade closed at 177,800 KRW, up 4.53%. By sector, the digital sector rose 3.81%, buoyed by gains in NHN Bugs (21.30%) and Danal (12.50%).

Kim Seok-hwan, a researcher at Mirae Asset Securities, analyzed the day's market, saying, "Concerns over Omicron eased, and although it was a futures and options expiration day, foreign investors rolled over by net buying more than 8,000 contracts in futures during the session, which increased the magnitude of the rise." He added, "What now needs to be considered is the U.S. Federal Reserve's response to inflation."

On the day, the won-dollar exchange rate closed at 1,174.50 KRW, down 0.12% from the previous session. This is also attributed to increased risk asset preference sentiment following the easing of concerns over Omicron. The strengthening of the Chinese yuan also appeared to have an influence.

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