KOSPI Ends Higher After 5 Days on Rebound Buying... Secondary Battery Stocks Rally

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] On the 20th, the KOSPI closed higher for the first time in five trading days, buoyed by a rebound buying spree following the recent market decline. Institutional investors led the index's rise by showing buying momentum in both major markets.

On the day, the KOSPI closed at 2,367.85, up 0.52% (12.19 points) from the previous trading day. The KOSPI opened at 2,373.64, up 0.76% (17.98 points), but the upward momentum slowed, and it briefly slipped to the 2,350 level in the morning session. It then regained upward momentum in the afternoon session.

Kim Seok-hwan, a researcher at Mirae Asset Securities, commented on the market, saying, "The KOSPI and KOSDAQ rose due to inflows of rebound buying," but he also noted, "With the Federal Open Market Committee (FOMC) meeting approaching, the continued strength of the dollar and rising government bond yields could increase volatility, which is a concern."

Institutional investors were the sole net buyers in the securities market, driving the index higher. Institutions purchased stocks worth 283.4 billion KRW on the KOSPI. In contrast, individual and foreign investors sold stocks worth 224.2 billion KRW and 78.6 billion KRW, respectively.

Among the market movements, stocks related to secondary batteries, which had shown weakness the previous day, stood out with gains. Samsung SDI closed at 634,000 KRW, up 4.28% (26,000 KRW) from the previous day, and LG Energy Solution also rose 2.16% (6,000 KRW) to close at 483,500 KRW. On the KOSDAQ market, EcoPro BM closed up 2.00%. Regarding this, researcher Kim reflected, "Secondary battery-related stocks, which had plunged the day before, rose due to Tesla's earnings expectations, expansion news, and the anticipation of increased electric vehicle battery sales from Samsung SDI."

Except for secondary battery-related stocks, most of the top market capitalization stocks on the KOSPI declined. Samsung Electronics closed at 55,800 KRW, down 1.06% (600 KRW) from the previous day. Other semiconductor stocks such as SK Hynix (-2.22%) and Samsung Electronics Preferred (-1.16%) also fell. Hyundai Motor (-1.49%), Samsung Biologics (-1.11%), and LG Chem (-0.79%) also declined.

By sector, insurance rose 3.13%, while textiles and apparel (2.82%), transportation and warehousing (2.50%), and steel and metals (2.43%) also gained. Medical precision (-0.59%) and pharmaceuticals (-0.59%) showed slight weakness.

The KOSDAQ index closed at 760.35, up 1.12% (8.44 points) from the previous trading day. The KOSDAQ opened at 758.35, up 0.86% (6.44 points), and gradually increased its gains throughout the day.

Institutional investors also purchased stocks worth 91.9 billion KRW in the KOSDAQ market. Foreign investors were net buyers as well, with 46.3 billion KRW. Individual investors were the sole sellers, offloading stocks worth 134.4 billion KRW.

The top market capitalization stocks on the KOSDAQ showed mixed trends by stock. Game-related stocks such as Pearl Abyss (2.20%) and Kakao Games (1.75%) rose, along with HLB (3.49%) and JYP Ent. (1.63%). EcoPro (-0.91%) and L&F (-0.83%) showed weakness.

By sector on the KOSDAQ, publishing and media replication surged 9.02%, while paper and wood (5.88%) and broadcasting services (2.84%) also rose.

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