KOSPI Recaptures 2700 on Institutional Buying... KOSDAQ Also Closes Higher

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] The KOSPI index closed higher on the 22nd, settling above the 2700 mark thanks to institutional buying. The KOSDAQ index, which struggled to find direction in the early session with fluctuations between declines and gains, solidified its upward trend in the latter part of the trading day and closed higher.

On this day, the KOSPI closed at 2710.00, up 23.95 points (0.89%) from the previous day. The KOSPI opened at 2686.68, up 0.63 points (0.02%), and successfully returned to the 2700 level during the morning session. Looking at the trading by investor type, institutions led the rise with net purchases of 284.4 billion KRW. Individuals and foreigners sold 184.7 billion KRW and 114 billion KRW worth of stocks, respectively. Individuals, who were net buyers of over 50 billion KRW immediately after the market opened, turned to selling during the morning session.

Researcher Myunggan Yoo from Mirae Asset Securities analyzed, "Recently, the proportion of trading volume by foreigners and institutions has increased due to a decrease in individual trading volume in the KOSPI market," adding, "Until corporate earnings momentum recovers, a supply-demand driven environment is expected to continue for the time being." He further noted, "Since the influence of institutional supply-demand has increased, sectors or companies with a high ratio of institutional net buying are favorable choices."

Most of the top market capitalization stocks in the KOSPI closed higher. Samsung Electronics ended trading at 70,300 KRW, up 0.57%. Other gainers included ▲LG Energy Solution (2.98%) ▲SK Hynix (1.23%) ▲Naver (0.15%) ▲Samsung Biologics (0.84%) ▲Kakao (1.43%) ▲Hyundai Motor (2.97%) ▲Samsung SDI (0.99%) ▲LG Chem (0.41%). Samsung Electronics Preferred shares fell 0.47%, making it the only stock among the top 10 by market capitalization to decline.

By sector, the insurance industry rose 3.15%, interpreted as benefiting from expectations of interest rate hikes. Other sectors that gained included ▲Transportation Equipment (2.53%) ▲Textiles & Apparel (2.18%) ▲Construction (1.93%). Only Pharmaceuticals (-1.16%) and Transportation & Warehousing (-1.10%) showed declines.

The KOSDAQ closed at 924.67, up 6.27 points (0.68%) from the previous trading day. The KOSDAQ started at 916.70, down 1.70 points (0.19%), and retreated to around 914 by 9:10 AM, showing a nearly 1% decline, but soon rebounded. After fluctuating sideways, it increased its gains toward the end of the session. By investor type, foreigners and institutions bought 19.4 billion KRW and 42.5 billion KRW respectively, while individuals were net sellers of 51.3 billion KRW.

Among the top market capitalization stocks, Wemade closed at 103,000 KRW, up 3.52% from the previous day. Other gainers included ▲Pearl Abyss (1.14%) ▲L&F (0.80%) ▲Kakao Games (0.38%) ▲Cheonbo (0.55%) ▲CJ ENM (1.96%). On the other hand, Celltrion Healthcare plunged 7.08% to close at 65,600 KRW. Other decliners included ▲EcoPro BM (-0.08%) ▲Celltrion Pharm (-3.43%) ▲HLB (-1.67%).

By sector, Food & Beverage & Tobacco (3.28%), Entertainment & Culture (2.33%), and Textiles & Apparel (2.10%) rose. The entertainment sector is believed to have risen due to expectations of earnings growth from reopening. Conversely, Distribution (-2.96%), Paper & Wood (-0.36%), and Telecommunications Services (-0.19%) declined.

Researcher Kwangnam Park from Mirae Asset Securities commented on the Korean stock market, "Despite the U.S. stock market falling due to aggressive remarks by Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), the index rose driven by increased bargain hunting and gains in large-cap stocks," but he also noted, "The still hawkish Fed stance and the European Union's consideration of banning Russian oil imports, which could lead to a rebound in international oil prices, remain burdens."

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