KOSPI Rises After a While but Hits Resistance at the Top... A Market Where Theme Stocks Run Wild

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] The KOSPI closed higher after three trading days. Although it briefly tested the 2720 level during the session, it mostly fluctuated in the high 2710s and succeeded in closing above the previous session. However, the index showed signs of a capped upside. The market exhibited rapid sector rotation, and amid this, a theme stock frenzy also emerged.

On the 19th, the KOSPI opened at 2707.76, up 14.55 points (0.54%) from the previous close, and maintained an upward trend. It fluctuated around the high 2710s during the session and closed at 2718.89, up 25.68 points (0.95%). The KOSDAQ closed at 931.56, up 13.33 points (1.45%) from the previous session. It continuously attempted to break through the 930 level during the session and succeeded in closing higher.

Net buying by institutions supported the index's rise. However, foreign investors switched to net buying during the session but reverted to net selling toward the close, restraining the index's upward breakout.

In the KOSPI market, individuals and foreign investors sold net amounts of 341.5 billion KRW and 3 billion KRW respectively, while institutions purchased 360.8 billion KRW. In the KOSDAQ market, foreign investors maintained a net buying stance until the close, purchasing 176.1 billion KRW. Institutions also net bought about 165.7 billion KRW. Only individuals sold about 330.9 billion KRW.

Kim Seok-hwan, a researcher at Mirae Asset Securities, noted, "Foreign buying returned to the KOSPI market after 10 trading days, and the rise of large-cap stocks led the index higher. In the KOSPI market, the electric and semiconductor sectors showed strength, while in the KOSDAQ market, the secondary battery materials sector was strong."

Looking at the top market cap stocks in the KOSPI, semiconductor leaders such as Samsung Electronics and SK Hynix recorded gains. The Philadelphia Semiconductor Index in the U.S. surged nearly 2% the previous day, which seems to have revived investor sentiment. Samsung Electronics closed at 67,300 KRW, up 600 KRW (0.90%) from the previous day. SK Hynix also closed at 112,500 KRW, up 3,500 KRW (3.21%). Among the top market cap stocks in the KOSDAQ, Wonik IPS (10.78%), KoYoung (8.11%), Eugene Tech (6.69%), Jusung Engineering (5.69%), L&F (4.88%), Hugel (4.03%), and Celltrion Pharm (2.87%) showed strong performances.

Meanwhile, rapid rotation was observed, and individual theme stocks surged. Ssangbangwool closed at the daily limit after news emerged that it had submitted a letter of intent (LOI) to the sales agent for acquiring Ssangyong Motor.

Seo Sang-young, a researcher at Mirae Asset Securities, said, "Rather than moving with a clear direction, the index is expected to see individual stock-driven trading, so short-term trading should be emphasized." Han Ji-young, a researcher at Kiwoom Securities, advised, "While rotation plays are an alternative for alpha generation in a box range market, the current rotation speed tends to be faster than previous rotation markets, so it is appropriate to avoid market timing trades aimed at responding to this."

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