Eco-friendly Cars Lead... KOSPI 'Spring Breeze'

KOSPI Rises Amid Eco-Friendly Car Strength
KOSDAQ Continues Decline Amid Foreign Net Selling

On the 11th, officials are refurbishing the exterior wall of the Seoul Library in Jung-gu, Seoul, with a phrase capturing the warm energy of spring. The Seoul Metropolitan Government announced that in the 2022 Spring Edition Dream Inscription Board Phrase Contest, Mr. Nam Jeong-mo's work, "A day full of things to share, a day when it's okay to walk slowly #Spring," was selected as the final winner. After creating an image matching the phrase, the Dream Inscription Board was installed on this day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Junho Hwang] On the 11th, the KOSPI started lower but turned to rise. It began the day down due to the sluggish U.S. stock market and caution ahead of economic indicators scheduled for release this week. However, it reversed to an upward trend, supported by the number of new COVID-19 cases falling below 100,000 and a decrease in the net selling by foreign investors.

As of 10:22 a.m., the KOSPI stood at 2,708.65, up 8.26 points (0.31%) from the previous close on the 8th. Individuals were net buyers with 50.1 billion KRW, while institutions and foreigners were net sellers with 26.6 billion KRW and 24.7 billion KRW respectively, resulting in a slight gain.

Among all stocks, 537 were on the rise. Among the top market capitalization stocks, Hyundai Motor's strength stood out. Hyundai Motor was up 2.27% at 180,500 KRW at that time. Kia was also up 3.74% at 77,700 KRW. Investor sentiment improved following news that the combined share of eco-friendly vehicle sales for both companies exceeded 20% for the first time ever.

According to Hyundai Motor and Kia on the 10th, the proportion of electric and hybrid vehicles in their domestic market sales for Q1 this year (273,762 units) was 23.5% (64,417 units). Eco-friendly vehicle sales in Q1 increased by 44.5% (19,840 units) compared to the same period last year (44,574 units). The share of eco-friendly vehicles in total sales also rose by 9.4 percentage points. Electric vehicle sales in Q1 reached 22,768 units, a 155% increase from 8,925 units in the same period last year.

Following the strength of Hyundai Motor and Kia, the transportation equipment sector rose 1.81%, showing the highest increase among sectors. Besides Hyundai Motor and Kia, Chassis, Hwashin, and Myeongshin Industry also showed gains in the 3% range.

Investor sentiment toward Samsung Electronics, the perennial market leader, also improved. After closing lower for the past four trading days, Samsung Electronics rose 0.44% to 68,100 KRW on this day. Meanwhile, LG Energy Solution, Samsung Biologics, NAVER, Kakao, and Samsung SDI all remained in a downtrend.

At the same time, the KOSDAQ stood at 933.07, down 1.37 points (0.18%) from the previous close. Individuals were net buyers with 87.9 billion KRW, but foreigners and institutions were net sellers with 63.2 billion KRW and 21.8 billion KRW respectively, pulling the index down.

Among all stocks, 724 were rising while 619 were falling. Among the top market capitalization stocks, EcoPro BM (0.17%), Pearl Abyss (0.51%), HLB (1.17%), and CJ ENM (0.16%) showed gains. By sector, computer services, food and tobacco, and other manufacturing were on the rise.

Seosangyoung, a researcher at Mirae Asset Securities, said, "The Korean stock market started lower due to the sluggish U.S. stock market, especially the Nasdaq, last Friday. However, positive news about the automobile industry and the number of new COVID-19 cases falling below 100,000 had a favorable impact on investor sentiment. From a supply-demand perspective, foreigners are still selling spot stocks but the scale is minimal, and they are net buyers in futures, showing a generally favorable supply-demand situation, which ultimately led to a successful reversal to an upward trend."

However, he added, "With the release of China's Consumer Price Index and Producer Price Index during the trading session today, and upcoming global inflation indicators such as Germany's and the U.S.'s Consumer Price Index tomorrow, active responses are expected to be limited."

On the 10th, citizens visiting Yeouido Yunjung-ro area in Seoul, where the warm weather continues, are strolling along the cherry blossom path, enjoying the atmosphere of spring. Photo by Kang Jin-hyung aymsdream@

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