Mixed Market with Cautious "Buy After Confirming Performance"... Samsung Electronics Turns Down

by Gi Yeonjin

Published 05 Apr.2022 10:47(KST)

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] The domestic stock market is showing mixed trends as investors adopt a wait-and-see stance ahead of the first-quarter earnings announcements by Samsung Electronics and other Korean companies on the 5th. While the KOSPI index is slightly down due to continued institutional selling, the KOSDAQ index is rising modestly.

As of 10:20 a.m. on the day, the KOSPI index stood at 2,755.14, down 2.76 points (0.10%) from the previous day. Institutions sold a net 157.5 billion KRW, pulling the index down, and foreigners also sold a net 15.1 billion KRW. Individuals bought a net 171.8 billion KRW.

Most of the top market capitalization stocks are on the rise, but Samsung Electronics (-0.29%), which showed gains early in the session, turned downward amid heavy institutional selling and fell to 69,100 KRW during the session. SK Hynix is also slightly down.

On the other hand, Samsung SDI and LG Chem are recording gains of over 3%, while LG Energy Solution (1.14%), NAVER (0.30%), Kakao (1.90%), and Hyundai Motor (0.28%) are also rising.

By sector, paper and wood are up more than 5%, and electrical and electronics, services, chemicals, transportation and defense, and medical precision sectors are also on the rise. Conversely, the insurance sector is down more than 2%, and steel and metals and banking sectors are down by around 1%. In particular, paper-related stocks showed strength due to a sharp rise in pulp prices. Murim SP hit the upper price limit during the session, and Shinpoong Paper, Murim Paper, and Daeyoung Packaging also rose more than 10% during the session.

Lee Jin-woo, head of investment strategy at Meritz Securities, said, "Recently, the market has been less influenced by the U.S. stock market," adding, "We are in a situation where macro issues are less relevant, but negative factors such as rising international oil prices persist, making company-specific issues important at this time."

At the same time, the KOSDAQ index is trading at 950.60, up 3.28 points (0.35%). Individuals are net buyers of 4.9 billion KRW, foreigners 1 billion KRW, and institutions 4 billion KRW.

Most of the top market capitalization stocks on the KOSDAQ are rising. EcoPro BM rose nearly 4%, and L&F also rose more than 2%, climbing to third place in market capitalization. Game stocks such as Pearl Abyss (1.73%), Kakao Games (0.25%), and Wemade (1.55%) are also on an upward trend. Conversely, bio stocks such as Celltrion Healthcare (-0.47%), Celltrion Pharm (-0.41%), and HLB (-0.32%) are weak.

Choi Yoo-jun, a researcher at Shinhan Financial Investment, forecasted, "Although uncertainty about external variables remains, confidence in domestic reopening is relatively higher, so the relative strength of consumer goods sectors is expected to continue for the time being."