KOSPI Surpasses 3000... Individual Investors Realize Nearly 2 Trillion Won in Gains

Individual Major Shareholders Listing Properties to Avoid Capital Gains Tax
Individual Investors Realize Over 1 Trillion Won in Profits on KOSDAQ

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] With buying momentum from foreigners and institutions, the KOSPI rebounded, while individual investors realized nearly 2 trillion won in capital gains to avoid capital gains tax. The domestic stock market is interpreted to have risen on expectations of increased consumption during the holiday season.

On the 28th, the KOSPI closed at 3,020.24, up 0.69% (20.69 points) from the previous day. Although it fluctuated around the 3,000 mark, dropping to 2,991.55 at 9:21 a.m., it surged sharply before the market closed.

Expectations of increased consumption toward the end of the year appear to have positively influenced the stock market. Despite the spread of the new COVID-19 variant "Omicron," according to Mastercard, retail sales during the year-end shopping season in the U.S. increased by 8.5% compared to the previous year and by 10.7% compared to 2019.

Nevertheless, individual selling pressure was strong. Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "Since the subjects liable for capital gains tax from stock sales on this day are finalized, it is interpreted that individual major shareholders flooded the market with capital gains tax-related sell orders. However, there was also an increase in buying inflows centered on financial investments aligned with the dividend record date." In fact, financial investments recorded net purchases worth 1.4616 trillion won.

On this day, foreigners and institutions net bought 443.2 billion won and 1.5214 trillion won, respectively. Individuals net sold 1.9661 trillion won.

Most sectors rose. The electric and gas sector had the largest increase at 4.26%, followed by textiles and apparel (3.71%), finance (1.27%), pharmaceuticals (1.19%), and machinery (1.11%). Medical precision (-1.86%) and transportation and warehousing (-0.65%) declined.

All of the top 10 stocks by market capitalization, except Kia, rose. Celltrion had the largest gain at 5.88%, followed by SK Hynix (1.19%), Samsung SDI (1.09%), NAVER (1.05%), LG Chem (0.80%), Samsung Biologics (0.56%), Kakao (0.44%), Hyundai Motor (0.23%), and Samsung Electronics (0.12%). Kia fell by 0.35%.

The KOSDAQ closed at 1,027.44, up 1.59% (16.08 points) from the previous day. The KOSDAQ maintained a rise of over 1% throughout the day and showed an upward trend before the market closed.

On the KOSDAQ as well, individuals realized capital gains. Foreigners and institutions net bought 318 billion won and 824.5 billion won, respectively, while individuals net sold 1.1294 trillion won.

Most sectors rose. Digital content had the largest increase at 4.47%, followed by paper and wood (4.36%), IT components (3.45%), general electrical and electronics (3.21%), and IT software & services (3.09%). Telecommunications services (-0.89%), information devices (-0.70%), transportation equipment and parts (-0.29%), transportation (-0.23%), and construction (-0.13%) declined.

All of the top 10 stocks by market capitalization, except HLB, rose. L&F had the largest gain at 8.60%, followed by Wemade (6.98%), Pearl Abyss (6.79%), Chunbo (6.03%), EcoPro BM (5.39%), Celltrion Healthcare (3.87%), Celltrion Pharm (3.78%), Seegene (1.15%), and Kakao Games (0.98%). HLB fell by 0.46%.

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