KOSPI Stalls, KOSDAQ Rises... Bio Stocks Show Broad Strength

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 15th, while the KOSPI index continues its downward trend, the KOSDAQ index is maintaining its upward momentum.

As of 2:14 PM on the same day, the KOSPI is trading at 2982.62, down 0.18% from the previous trading day, while the KOSDAQ is up 0.04% at 1003.17.

With the Federal Open Market Committee (FOMC) results approaching, caution is dampening investor sentiment, resulting in an unclear market direction. Individual investors are net buyers alone in the KOSPI market with 247 billion KRW, whereas foreigners and institutions are net sellers with 122.6 billion KRW and 147.2 billion KRW respectively. In the KOSDAQ market, only institutions show a net buying advantage of about 44.1 billion KRW, while individuals and foreigners are net sellers by approximately 1.2 billion KRW and 27.6 billion KRW respectively.

Seo Sang-young, a researcher at Mirae Asset Securities, said, "The U.S. stock market declined due to concerns over aggressive Federal Reserve (Fed) actions following high inflation data, which is weighing on the Korean stock market. In particular, the weakness in large tech stocks that have led the rise so far, as well as electric vehicle and metaverse-related stocks continuing to decline, are factors dampening investor sentiment. Additionally, if the Fed makes a more aggressive announcement than expected, foreign investors are likely to withdraw, so supply-demand factors are also negative."

Han Ji-young, a researcher at Kiwoom Securities, stated, "Although the acceleration of tapering (asset purchase reduction) has been largely priced in by the market since the November FOMC, concerns about the acceleration of interest rate hikes (early-year rate hikes) remain ongoing." She added, "Of course, with the December FOMC results imminent, it is expected that the domestic stock market today will enter a phase of increased volatility influenced by expanded caution and the results of China's real economy indicators."

Meanwhile, with COVID-19 cases reaching an all-time high today, there is a strong performance centered on top market capitalization bio stocks.

Celltrion Healthcare, Celltrion Pharm, Alteogen, and Korea BNC are on the rise. Additionally, most bio stocks including Ilsin Bio, Kyungbo Pharm, JW Pharmaceutical, Hyundai Bio, and Sama Pharm are showing upward trends.

By KOSPI sector, Medical Precision (1.46%), Pharmaceuticals (1.12%), and Paper & Wood (0.67%) are rising. Conversely, Transportation & Warehousing (-1.63%), Steel & Metals (-1.19%), and Construction (-0.92%) are declining.

By KOSDAQ sector, Pharmaceuticals (1.94%), Food & Beverage and Tobacco (0.71%), and Distribution (0.62%) are on the rise. Entertainment & Culture (-1.81%), Telecommunications Equipment (-1.20%), and Software (-1.19%) are falling.

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