KOSPI Reclaims 2700 Level, KOSDAQ Nears 900 Level... Technical Rebound Effect

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] After opening higher on the 3rd, the KOSPI and KOSDAQ indices continue their upward trend. This is interpreted as buying interest flowing mainly into stocks that were excessively oversold, along with positive factors from the U.S. stock market rally.

As of 10:51 a.m. on the 3rd, the KOSPI is at 2,710.68, up 1.78% (47.34 points) from the previous trading day. The KOSPI opened at 2,706.34, up 1.61% (43.00 points) from the previous day. Looking at investor trends at this time, individuals and foreigners are net selling 4.5 billion KRW and 18.9 billion KRW respectively, while institutions are the sole net buyers with 32.9 billion KRW.

Among the top market capitalization stocks, Samsung Electronics is trading up 0.55% at 73,700 KRW. Other stocks mostly show gains, including LG Energy Solution (4.11%), SK Hynix (4.98%), Samsung Biologics (4.33%), Hyundai Motor (2.64%), Samsung SDI (0.34%), and Kakao (1.29%). Notably, LG Chem is trading at 685,000 KRW, up 7.20% from the previous day. The leading sectors in the KOSPI are Medical Precision (+15.46%), Pharmaceuticals (+4.03%), and Chemicals (+2.75%).

At the same time, the KOSDAQ index stands at 891.78, up 2.17% (18.91 points) from the previous trading day. The KOSDAQ opened at 887.85, up 1.72% (14.98 points). Investor trends show individuals buying 16.9 billion KRW worth, while foreigners and institutions are net selling 6.9 billion KRW and 7.3 billion KRW respectively.

Among the top market capitalization stocks on KOSDAQ, Celltrion Healthcare is trading up 3.36% at 64,600 KRW. Other stocks mostly show gains, including EcoPro BM (4.63%), L&F (6.52%), Kakao Games (3.04%), Wemade (2.32%), HLB (2.52%), Celltrion Pharm (3.75%), Seegene (8.27%), and CJ ENM (5.53%). Pearl Abyss is showing a decline (-2.23%). The leading sectors in KOSDAQ are Broadcasting Services (+7.38%), Pharmaceuticals (+4.73%), and Paper & Wood (+3.68%).

Kiwoom Securities analyst Seheon Kim said, "After the sharp rebound on the 28th-29th, the pace of the rebound has slowed, and the U.S. stock market reacted negatively to poor earnings from manufacturing companies such as GM and Starbucks. These factors may limit further gains in the domestic market today. We expect the rebound momentum to vary across sectors depending on earnings forecasts."

Meanwhile, securities firms have forecasted that the KOSPI could initially rise to 2,800?2,820 through a technical rebound this month, and potentially reach 3,000 in a secondary phase. NH Investment & Securities analyst Younghwan Kim said, "Concerns over the Federal Reserve's tightening intensity have somewhat eased, and strong earnings from U.S. companies have reduced market uncertainty. Investor panic subsided late last week, and the market is expected to show a gradual rebound." He added, "Volatility is expected to increase depending on key variables such as inflation and other major economic indicators, COVID-19 case trends in major countries, and geopolitical risks in Ukraine." He set the first technical rebound target for KOSPI at 2,800 and the second at 3,000.

Daishin Securities analyst Kyungmin Lee said, "The overreaction to interest rate hike concerns is normalizing, and the supply-demand imbalance following LG Energy Solution's listing has passed its peak, making a technical rebound possible. With easing investor sentiment and supply-demand recovery alone, an attempt to recover the KOSPI 2,800 level is feasible."

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