KOSPI and KOSDAQ Rise, Erasing 'S' Fear... Sectors Surge on Regime Change Expectations

Oil Prices Fall... Stagflation Concerns Ease
Domestic Stocks Rise Alongside US Market Gains
Stocks Related to Yoon Seok-yeol Increase
Construction, Platform, and Nuclear Power Stocks Up

On the 10th, dealers are working in the Hana Bank dealing room in Jung-gu, Seoul, where the KOSPI opened at 2,660.86, up 38.46 points (1.47%) from the previous trading day. On the same day, the won-dollar exchange rate started trading at 1,225 won, down 12 won from the previous trading day. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Hwang Yoon-joo] Both the KOSPI and KOSDAQ indices are extending their morning gains. The KOSPI rose to 2681 in early trading, while the KOSDAQ surpassed 890. The announcement of the 4th round of negotiations between Russia and Ukraine, which eased concerns about stagflation including falling oil prices, is interpreted as boosting investor sentiment. In particular, with Yoon Seok-yeol of the People Power Party elected as the 20th president, sectors such as construction, nuclear power-related stocks, and platform companies are also contributing to driving the indices.

As of 11 a.m. on the 10th, the KOSPI is at 2676.72, up 2.07% (54.32 points) from the previous trading day. The KOSPI opened at 2660.86, up 1.47% (38.46 points) from the previous day. Early in the session, it rose as much as 2.30% (60.39 points) to 2682.79.

Looking at investor trends, foreign investors and institutions, who had recently been selling, are now net buyers with purchases of 35.6 billion KRW and 158.7 billion KRW respectively, supporting market liquidity. Conversely, individual investors are selling stocks worth 194.9 billion KRW.

[Image source=Yonhap News]

By sector, service (+5.15%), construction (+4.97%), distribution (+3.57%), machinery (+2.22%), electrical and electronics (+2.14%), insurance (+1.86%), finance (+1.77%), and food and beverage (+1.68%) ranked among the top gainers.

Among the top market capitalization stocks, Naver and Kakao surged 9.68% and 7.38%, respectively. Samsung Electronics (+2.01%), LG Energy Solution (+3.78%), SK Hynix (+2.54%), Samsung Biologics (+1.04%), Hyundai Motor (+0.30%), LG Chem (+0.60%), Samsung SDI (+0.80%), and Kia (+1.29%) also rose. Samsung Electronics has returned to the 70,000 KRW level.

The sectors and stocks related to Yoon’s campaign promises are showing notable gains. The construction sector is a prime example. So-yeon Park, a researcher at Shin Young Securities, analyzed, "President-elect Yoon Seok-yeol plans to expedite permits for reconstruction and redevelopment projects to increase supply volume, which is expected to lead to a recovery in the domestic housing construction and building materials industries."

Yoon has announced regulatory relaxations including the redevelopment of first-generation new towns such as Bundang, Ilsan, Pyeongchon, Sanbon, and Jungdong, as well as easing the excess profit recovery system for reconstruction. This is interpreted as expanding investment sentiment in the construction sector.

Additionally, nuclear power-related stocks such as Boseong Powertech, Woori Technology, and KEPCO Engineering & Construction are surging on expectations that government support will expand as the current administration’s 'nuclear phase-out' policy is reversed.

Leading platform companies like Naver and Kakao also reflected expectations of regulatory easing. Among Yoon’s campaign pledges, the establishment of a 'Digital Platform Government' appears to have stimulated investor sentiment. The possibility of reconsidering the 'Online Platform Fairness Act,' which was promoted by the Moon Jae-in administration, has increased, further boosting investor confidence. The 'Online Platform Fairness Act' aims to create an environment where platforms and tenant companies grow together, including mandatory contract issuance to tenant companies. The outlook that the regulatory atmosphere, which had restricted platform companies for mutual growth, will shift toward freer competition is reflected in this sentiment.

The KOSDAQ index is trading at 889.85, up 2.27% (19.71 points) from the previous trading day. The KOSDAQ opened at 885.05, up 1.71% (14.91 points), and is now rising above 2%.

By sector, construction (+3.63%), entertainment and culture (+3.19%), non-metal (+3.20%), internet (+3.05%), publishing and reproduction (+3.15%), telecommunications equipment (+2.98%), and IT components (+2.93%) are among the top gainers.

Among the top market capitalization stocks, Celltrion Healthcare (-0.46%) and Pearl Abyss (-0.97%) are declining. Celltrion Pharm is holding steady. EcoPro BM (+3.13%), L&F (+5.01%), Kakao Games (+3.51%), Wemade (+1.97%), HLB (+4.26%), Cheonbo (+5.21%), and Seegene (+2.80%) are showing upward momentum.

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