KOSPI Rises for 9 Consecutive Trading Days... Approaching 2400 Level

by Jang Hyowon

Published 16 Jan.2023 15:46(KST)

[Asia Economy Reporter Jang Hyowon] The KOSPI index rose to just below the 2400 level as risk appetite recovered due to the rise in the US stock market and the strengthening of the Korean won.

On the 16th, the KOSPI index closed at 2399.86, up 13.77 points (0.58%) from the previous day.

By investor type, institutions and foreigners led the index increase with net purchases of 222 billion KRW and 300.3 billion KRW respectively. On the other hand, individuals recorded net sales of 491.1 billion KRW. In program trading, net purchases of 9.7 billion KRW occurred in arbitrage trading and 114.1 billion KRW in non-arbitrage trading.

[Image source=Yonhap News]

On that day, the KOSPI index started higher following last week's strong finish in the US stock market due to improved consumer sentiment indicators. Additionally, the strengthening of the Korean won helped restore risk appetite, attracting buying from institutions and foreigners.

By sector, the financial industry led the market with a 2.13% gain. This was analyzed to reflect expectations of strong earnings forecasts from major financial holding companies, government real estate relief policies, and shareholder-friendly policy hopes. It was also interpreted as being synchronized with the strength of financial stocks in the US stock market.

Leading the financial sector, service industries rose 1.75%, non-metallic minerals 1.54%, telecommunications 1.43%, securities 1.36%, steel and metals 1.12%, food and beverages 0.9%, electrical and electronics 0.41%, and medical precision 0.37%. Conversely, the machinery sector fell 1.69%, transportation equipment -1.15%, textiles and apparel -0.89%, and construction -0.82% recorded weakness.

Top market capitalization stocks showed mixed movements. Samsung Electronics rose 0.49%, and LG Energy Solution and SK Hynix also showed slight gains. NAVER increased 2.82%, Kakao 4.03%, and POSCO Holdings 1.97%. On the other hand, Samsung Biologics fell 0.49%, LG Chem -0.93%, and Samsung SDI -1.11% were weak.

The KOSDAQ index also closed higher. On that day, the KOSDAQ index ended at 716.89, up 5.07 points (0.71%) from the previous day. Foreigners were net buyers of 52.5 billion KRW, while institutions and individuals showed net sales of 1 billion KRW and 26.9 billion KRW respectively.

Most of the top market capitalization stocks were strong. EcoPro BM rose 0.5%, L&F 0.21%, Kakao Games 8.92%, HLB 0.47%, EcoPro 1.3%, Pearl Abyss 2.29%, and Rino Industries 0.19% also increased. Meanwhile, Celltrion Healthcare and Celltrion Pharm closed weaker.