Semiconductors Overcome Omicron... KOSPI Ends Slightly Higher

Samsung Electronics 1.30%↑
SK Hynix 3.32%↑

On the 21st, the KOSPI opened at 2,981.67, up 18.67 points (0.63%) from the previous trading day, at the Hana Bank dealing room in Jung-gu, Seoul. The won-dollar exchange rate started at 1,189.8 won, down 1.0 won from the previous trading day. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Ji Yeon-jin] On the 21st, the domestic stock market closed with a slight gain. Although a decline was expected due to concerns over economic slowdown as countries worldwide reimposed restrictions amid the Omicron impact, the market succeeded in rebounding in just one day.

On this day, the KOSPI index closed at 2,975.03, up 12.03 points (0.41%) from the previous day. Despite the weak performance of the U.S. market the day before, the KOSPI opened higher and showed a sideways trend in the early session. Institutions defended the index by net buying 598.9 billion KRW, and foreigners turned to net buying in the late session with 38.5 billion KRW. On the other hand, individual investors sold 649.4 billion KRW worth of stocks.

The KOSPI index was supported by Samsung Electronics and SK Hynix. These semiconductor stocks showed strength from the early session after U.S. semiconductor company Micron announced strong earnings the day before. Samsung Electronics closed at 78,100 KRW, up 1.30% from the previous day, and SK Hynix recorded a 3.32% increase.

Meanwhile, most of the other large-cap stocks remained flat, with LG Chem (-2.13%) and Samsung SDI (-1.38%) showing weakness.

Lee Jin-woo, a researcher at Meritz Securities, said, "Although the U.S. market is weak due to Omicron and interest rate hike risks, semiconductors are holding the center. Semiconductor demand is expected to show continuity beyond expectations, and since it is year-end and the market is bottoming out recently, momentum will be created."

The KOSDAQ also closed at 996.60, up 6.09 points (0.61%). The KOSDAQ opened higher, then turned lower, but rebounded again in the afternoon. Individuals net sold 328 billion KRW, while foreigners and institutions net bought 88.2 billion KRW and 251.3 billion KRW, respectively.

Among the top market cap stocks in KOSDAQ, Wemade closed up 6.55%, and game stocks such as Kakao Games (2.79%) and Pearl Abyss (1.94%) showed notable strength. Secondary battery stocks like EcoPro BM (1.94%) and L&F (1.21%) experienced a sharp decline in the early session but succeeded in turning upward.

Park Su-jin, a researcher at Mirae Asset Securities, said, "The index hesitated due to news of the first Omicron death in the U.S., but in the afternoon, the rise in Nasdaq futures and foreigners turning to net buying expanded the gains again. The decline in Tesla and Rivian stock prices in the U.S. market continued the weakness in secondary battery-related stocks."

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