KOSPI Closes Higher on 'Positive Sentiment in Chinese Stock Market'... Recovers 2700 Level After 9 Trading Days

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The domestic stock market closed higher on the 18th, driven by the upward trend in the Chinese stock market.

On that day, the KOSPI closed at 2707.02, up 0.46% (12.51 points) from the previous trading day. The KOSPI, which had been flat around the 2690 level, rebounded from around 2 p.m. and surpassed the 2700 mark for the first time in nine trading days. Individual investors were net buyers of 134 billion KRW, pushing the index up, while foreigners and institutions were net sellers of 102 billion KRW and 13.1 billion KRW, respectively.

The domestic stock market closed higher as investor sentiment improved following the upward trend in the Chinese stock market. Seo Sang-young, a researcher at Mirae Asset Securities, explained, "The rise in the Chinese stock market was led by financial stocks, expanding the gains," adding, "As the Chinese stock market rose, investor sentiment improved, and the domestic stock market also rose in tandem." As of 2:51 p.m. that day, the Shanghai Composite Index was up 1.25%, and the Hong Kong Hang Seng Index rose 0.35%. Although the Hang Seng Index fell 2.63% compared to the previous session in the morning, it showed an upward trend afterward.

Additionally, it is analyzed that Russia overcoming the default (debt default) crisis also had an impact. Jung Da-woon, a researcher at Ebest Investment & Securities, explained, "Russia's payment of national bond interest in US dollars, overcoming default concerns, seems to have acted as a positive factor for the domestic stock market." However, the international credit rating agency Standard & Poor's (S&P) downgraded Russia's credit rating from CCC- to CC, one notch lower.

Among the top market capitalization stocks, LG Chem recorded the largest gain, rising more than 3%. It was followed by Kakao (1.88%), LG Energy Solution (1.6%), Samsung Biologics (1.6%), and Hyundai Motor (1.48%). On the other hand, Samsung SDI (-0.79%), Samsung Electronics (-0.7%), and Kia (-0.55%) declined.

By sector, textiles and apparel (3.02%), transportation and warehousing (2.41%), insurance (1.63%), pharmaceuticals (1.6%), telecommunications (1.21%), and banking (1.01%) showed upward trends. Electric and gas utilities (-0.56%) and electrical and electronics (-0.17%) declined.

The KOSDAQ index rose 0.97% (8.83 points) from the previous session to 922.96. Foreigners and institutions were net buyers of 65.8 billion KRW and 30.5 billion KRW, respectively, while individuals were net sellers of 47.8 billion KRW.

Among the top market capitalization stocks, Pearl Abyss showed strong gains, rising 5.11%. It was followed by Kakao Games (3.45%), Wemade (1.69%), Cheonbo (1.61%), and EcoPro BM (1.17%), while HLB (-3.08%) declined.

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