KOSPI and KOSDAQ Rise Over 2% Despite 'S Concerns'... Construction Sector Smiles, LG Chem Frowns

Diplomatic Resolution Prospects for Ukraine Crisis
International Oil Prices Plunge... Stagflation Concerns ↓
Nasdaq Surges... Domestic Stock Market, Investor Sentiment ↑
Yoon Seok-yeol's Pledge-Related Sectors and Stocks ↑

On the 10th, dealers are working in the dealing room of Hana Bank 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 Jinhyung Kang aymsdream@

[Asia Economy Reporter Hwang Yoon-joo] As concerns over stagflation eased, the US Nasdaq index surged by over 3%, leading the domestic stock market to close with a rise of over 2%. LG Chem, the only top market capitalization stock to decline due to exclusion from indices such as KOSPI 200, fell to the 400,000 KRW range.

Among Top 10 KOSPI Market Cap Stocks, Only LG Chem Declines... Closes Up Over 2% on Institutional Buying

As of 2 PM on the 10th, the KOSPI closed at 2,680.32, up 2.21% (57.92 points) from the previous trading day. Institutions led the index by net buying 765.6 billion KRW. Individuals and foreigners sold 353.9 billion KRW and 427.1 billion KRW respectively. Foreigners were net buyers early in the session but turned to net sellers later.

Among the top market capitalization stocks, only LG Chem (-1.29%) saw its stock price decline. Preliminary trading trend data by investor type shows that foreigners and institutions net sold 9.196 billion KRW and 6.951 billion KRW worth of LG Chem shares respectively, pulling the index down. Tomorrow (the 11th), due to the rebalancing of KOSPI 200, KRX BBIG, and K-New Deal indices, LG Chem will be excluded and LG Energy Solution will be included, which is interpreted as the selling pressure impacting the stock price.

Samsung Electronics (+2.45%) extended its gains in the afternoon, closing at 71,200 KRW. LG Energy Solution (+1.71%), SK Hynix (+1.69%), Naver (+8.54%), Samsung Biologics (+3.12%), Kakao (+8.58%), Samsung SDI (+1.21%), and Kia (+1.58%) all closed higher.

By sector, construction (+5.80%), services (+5.36%), distribution (+3.20%), non-metallic minerals (+2.67%), pharmaceuticals (+2.45%), insurance (+2.39%), machinery (+2.30%), and finance (+2.12%) were among the top gainers.

The KOSDAQ index also closed at 889.08, up 2.18% (18.94 points) from the previous trading day. Individuals and foreigners net sold 255.2 billion KRW and 5.5 billion KRW respectively, while institutions bought 271.3 billion KRW.

All top market capitalization stocks closed higher. Celltrion Healthcare (+0.92%), EcoPro BM (+3.16%), Pearl Abyss (+0.87%), L&F (+4.36%), Kakao Games (+4.35%), Wemade (+1.97%), Celltrion Pharm (+1.62%), HLB (+4.26%), Chunbo (+6.29%), and Seegene (+2.99%) were among the top 10 stocks.

By sector, construction (+3.23%) again had the highest gain. Broadcasting services (+2.86%), digital content (+2.86%), non-metallic (+2.80%), finance (+2.62%), and entertainment culture (+2.42%) were also among the top performing sectors.

Construction Sector Rises in Both Major Indices... Expectations on Yoon Suk-yeol's Election Promises

Yoon Seok-yeol, the president-elect of the 20th Republic of Korea, is ascending the podium at the People Power Party's campaign headquarters disbandment ceremony held at the National Assembly Library on the 10th. Photo by the National Assembly Press Photographers Group

The construction sector's strong rise in both major indices is attributed to the election of Yoon Suk-yeol, the People Power Party candidate, as the 20th president. During the campaign, President-elect Yoon promised large-scale housing supply and deregulation of real estate, including reconstruction, to stabilize the real estate market. Specifically, he announced plans to supply 2.5 million housing units nationwide over his five-year term and to ease regulations on reconstruction, redevelopment, and remodeling. The supply in the metropolitan area is expected to be between 1.3 million and 1.5 million units, leading to expectations that the construction sector will benefit.

Platform stocks also showed notable gains. On the KOSPI, Naver and Kakao closed up over 8%, and on the KOSDAQ, Kakao Games rose over 4%. This is seen as reflecting expectations that regulations on platform companies will be eased, contrary to the current administration's stance. The 'Online Platform Act,' currently pending in the National Assembly, is a representative example. Confusion over the responsible ministry has caused the bill to remain in limbo for nearly a year.

[Image source=Yonhap News]

The biggest factor driving the index was the easing of stagflation concerns, which expanded investor sentiment. As the Russia-Ukraine conflict showed increased chances of diplomatic resolution, international oil prices plunged, calming the surge in commodity markets. This led to improved investor sentiment toward risk assets, as evidenced by the Nasdaq index rising over 3%.

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