KOSPI Strengthens to 2986 Level... Foreigners Join as Individuals Net Buy

by Lee Seonae

Published 07 Dec.2021 13:34(KST)

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the morning of the 7th, the KOSPI showed a dull sideways trend, but in the afternoon it is gaining strength as the rise expands. The index is being supported by the solo net buying of individuals and the participation of foreigners.

As of 1:30 PM, the KOSPI is trading at 2,986.43, up 0.44% from the previous trading day. The KOSDAQ is trading at 994.12, up 0.23%. While the KOSDAQ still shows no sign of breaking through 1,000, the KOSPI is expanding its gains thanks to individuals and foreigners.

Individuals are buying about 121.6 billion KRW in the KOSPI market. Foreigners' net buying is 18.4 billion KRW, which is still small in scale. Meanwhile, institutions are net sellers with about 150.5 billion KRW.

By sector in the KOSPI, construction (1.61%), transportation and warehousing (1.12%), and electrical and electronics (0.91%) are rising. On the other hand, pharmaceuticals (-1.76%), paper and wood (-0.61%), and medical precision (-0.56%) are falling. In the KOSDAQ sectors, medical and precision instruments (2.32%), information devices (1.34%), and other services (1.08%) are rising. Meanwhile, digital content (-1.84%), paper and wood (-0.95%), and IT S/W & SVC (-0.94%) are falling.

Han Ji-young, a researcher at Kiwoom Securities, said, "Omicron cases are increasing worldwide, and although there is not enough information on fatality rates and related data, the prevailing view is that it will not be as serious as the initial COVID-19 or the Delta variant." She added, "Also, unlike the early days when vaccines did not exist at all, vaccines and treatments are now available to humanity, so the possibility of full lockdown measures is decreasing. Therefore, we maintain our previous forecast that the economic and stock market impact of Omicron will be limited."