KOSPI Starts Upward, Avoiding Weakness in US Market

On the 4th, dealers were working in the dealing room of Hana Bank in Euljiro, Seoul. On that day, the KOSPI index opened at 2714.83, up 7.01 points (0.26%) thanks to buying by foreigners and institutions. The KOSDAQ started at 888.51, down 3.09 points (0.35%). The won-dollar exchange rate opened at 1202 won, down 4.4 won. Photo by Moon Honam munonam@

[Asia Economy Reporter Junho Hwang] Despite the decline in the US stock market, the domestic stock market started higher. With continued inflows from foreign and institutional investors, the market is on an upward trend.

On the 4th, the KOSPI opened at 2714.83, up 7.01 points (0.26%) from the previous trading day. As of 9:20 AM, the KOSPI rose 1.10% to 2737.53. While individual investors, who had been supporting the index, realized profits worth 141.7 billion KRW, the inflow of foreign and institutional investors has driven the market upward. At this time, foreigners were net buyers of 46.2 billion KRW, and institutions were net buyers of 97.5 billion KRW.

Among all stocks, 607 rose while 209 declined. Among the top market capitalization stocks, Samsung Electronics, the perennial leader, showed a rise of around 1.50%. This increase came amid continued foreign inflows, with shares trading at 74,400 KRW. LG Energy Solution, which rose to second place in market cap, recorded a 4.09% increase to 496,500 KRW. Although the plunge in tech stocks in the US market was expected to impact the domestic market, both NAVER (2.34%) and Kakao (1.06%) are on an upward trajectory. LG Chem, weakened by the listing of LG Energy Solution, fell 1.18%, and Samsung SDI, unable to keep pace with competitors' gains, dropped 0.34%.

By sector, the paper and wood industry led all sectors with a 4.46% increase. The extension of social distancing measures due to the rise in COVID-19 cases acted as a catalyst. The increase in parcel volumes due to 'staying at home' boosted stocks such as Taelim Packaging (17.04%), Daeyoung Packaging (12.66%), Shinpoong Paper (8.86%), and Hanchang Paper (5.40%), all showing significant gains.

The KOSDAQ started lower but soon turned upward. It opened at 888.51, down 3.09 points, but currently stands at 894.65, up 0.34%. On the KOSDAQ, individual and institutional investors are supporting the index with net purchases of 21.4 billion KRW and 6.5 billion KRW, respectively. Among all stocks, 866 are showing gains.

Han Ji-young, a researcher at Kiwoom Securities, analyzed, "The domestic stock market experienced relatively severe adjustments compared to other markets in January, and considering that it did not fully reflect the sharp rise in major foreign markets such as the US during the holiday period, the impact of the US stock market plunge is expected to be limited."

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