KOSPI Recovers from Omicron Concerns... Closes Above 3010 Amid Foreign and Institutional Buying Frenzy

Individual Investors Net Sell Over 1.5 Trillion Won in KOSPI and KOSDAQ Markets
Samsung Electronics Returns to '80,000 Won Stock' After About 4 Months... Hyundai Motor Up 3%

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] As concerns over the Omicron variant virus eased, the KOSPI and KOSDAQ indices closed higher due to simultaneous buying by foreigners and institutions.

On the 24th, the KOSPI closed at 3012.43, up 0.48% (14.26 points) from the previous trading day. The index started the day at 3009.48, up 0.38% (11.31 points) from the previous day, and maintained its upward trend to close higher.

The index was influenced by the strong performance of the U.S. stock market. In particular, foreigners and institutions continued to net buy stocks for four consecutive trading days, indicating a significant recovery in investor sentiment. On this day, foreigners purchased stocks worth 188.3 billion KRW in the domestic stock market, and institutions also net bought stocks worth 915.9 billion KRW. Individuals, however, sold stocks worth approximately 1.1283 trillion KRW alone.

By sector, transportation equipment (2.07%), machinery (1.43%), paper & wood (0.85%), and electrical & electronics (0.80%) showed the largest gains. In the stock market that day, expectations for Hyundai Motor's expansion in the electric vehicle business spread, leading to a simultaneous rise in the transportation equipment sector and secondary battery-related stocks. Sangyoung Seo, a researcher at Mirae Asset Securities, said, “Hyundai Motor officially announced that it will strengthen electric vehicle research and development and stop launching new internal combustion engine models, which increased expectations for the electric vehicle business. This, combined with Tesla's stock price rise due to expectations of increased vehicle deliveries in the U.S. stock market, led to gains in secondary battery-related stocks.”

Among the top market capitalization stocks, Samsung Electronics rose 0.75% to close at 80,500 KRW. This is the first time since August 10 that the closing price was set above the 80,000 KRW mark. Other stocks that rose included SK Hynix (0.39%), NAVER (1.59%), Kakao (1.33%), Hyundai Motor (3.11%), Samsung SDI (1.24%), and Kia (1.07%).

The KOSDAQ index closed at 1007.42, up 0.41% (4.11 points) from the previous trading day. During the day, the KOSDAQ index touched the 1010 level, rising as much as 0.7%. In the KOSDAQ market that day, individuals net sold stocks worth 428 billion KRW, while foreigners and institutions bought stocks worth 177 billion KRW and 257 billion KRW, respectively.

Among the top market capitalization stocks, Celltrion Healthcare (1.11%), Pearl Abyss (1.69%), L&F (0.43%), Kakao Games (1.11%), and Celltrion Pharm (1.02%) rose, while EcoPro BM (-1.28%), Wemade (-2.52%), HLB (-0.15%), and Chunbo (-0.21%) declined.

However, despite the KOSPI recovering the 3000 level for the first time in a while, opinions suggest that the rebound will be limited. Although a rotation market focusing on short-term oversold stocks or neglected stocks may appear until the end of the year, downward pressure could increase due to concerns about earnings instability, fundamental variables, and supply-demand burdens after ex-dividend dates. Accordingly, some view the KOSPI's rebound attempt as a signal to increase cash holdings. Kyungmin Lee, a researcher at Daishin Securities, said, “This month's program buying and short-covering buying will turn into program selling, short selling, and supply-demand burdens due to LG Energy Solution's new listing early next year. It is positive to increase interest in oversold stocks due to individual selling before and after the ex-dividend date early next year and to start buying at low prices.”

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