Tension Eases with a Strong Close... KOSDAQ Jumps 4.55%

[Asia Economy Reporter Hwang Junho] On the 16th, the stock market closed with a refreshing rise for the first time in a while as concerns over Russia's invasion of Ukraine eased. In particular, the KOSDAQ surged more than 4% after four trading days.

On that day, the KOSPI closed at 2,729.68, up 1.99%. The index was supported by net buying from institutions. Institutions made net purchases worth 225.3 billion KRW. On the other hand, individuals and foreigners took the opportunity for profit-taking after a long time, selling net amounts of 208.1 billion KRW and 43.1 billion KRW respectively.

Among all stocks, 832 showed an upward trend. All of the top 1 to 10 stocks by market capitalization rose. Among the 10 stocks, LG Chem closed up 4.98% at 653,000 KRW. Following that, Kakao (4.08%), SK Hynix (2.76%), Samsung Biologics (2.30%) also rose sharply.

In the case of LG Chem, it is analyzed that the strong performance was due to the rise in electric vehicle-related stocks in the US market the previous day, along with the international credit rating agency Moody's upgrading LG Chem's rating.

Samsung Electronics, the unchanging leader of the KOSPI, rose 1.49%, and SK Hynix, also a semiconductor stock, rose 2.76%.

By industry, the machinery sector rose 4.08%, showing the highest increase within sectors. Following that, pharmaceuticals and non-metallic minerals showed gains in the 3% range. Within the machinery sector, Hanshin Machinery (15.16%), Korea Cast Iron (7.96%), and Cham Engineer (6.83%) led the overall sector's rise.

Kim Seok-hwan, a researcher at Mirae Asset Securities, analyzed, "Most large-cap stocks by market capitalization and the electrical and electronics sector showed remarkable gains," adding, "The Philadelphia Semiconductor Index surged sharply in the US market the previous day, and SK Hynix showed strength following news of successful development of next-generation memory semiconductors."

The KOSDAQ closed at 878.15, up 4.55%. Large-scale purchases by foreigners and institutions lifted the index. Foreigners and institutions made net purchases of 280.3 billion KRW and 122.1 billion KRW respectively. Individuals sold net amounts of 403 billion KRW.

Among all stocks, 1,376 rose. The top 1 to 10 stocks by market capitalization also showed an upward curve. Among them, the largest increase was WEMADE (12.06%). After the earnings announcement on the 9th, the stock price fell more than 30%, and as the view that the decline was excessive expanded, a rebound buying force is estimated to have flowed in. WEMADE MAX also rose 19.15%. Besides WEMADE, game stocks showed strong gains. Pearl Abyss closed up 8.95% at 101,000 KRW.

The digital sector, including these game stocks, rose 6.70%, showing the highest increase among sectors. Following that, entertainment (5.75%), pharmaceuticals (5.42%), and non-metallic minerals (5.16%) also recorded strong gains.

Lee Kyung-min, a researcher at Daishin Securities, analyzed, "Geopolitical risks have eased, improving risk appetite, and the recently announced Chinese inflation data is also positive," adding, "In particular, foreign demand concentrated on KOSDAQ and futures, causing the KOSDAQ to surge more than 4%." He added.

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