KOSPI Mixed... Samsung Electronics Falls Over 1%

The KOSPI index, after starting higher, has been fluctuating around the flat line due to selling by foreign and institutional investors. On the 14th, dealers are working in the Hana Bank dealing room in Euljiro, Seoul. Photo by Moon Honam munonam@

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[Asia Economy Reporter Hwang Junho] On the 14th, the stock market showed mixed trends. The index fell in the morning due to increased tightening pressure following the Bank of Korea's base rate hike, but improved in the afternoon as expectations for a reserve requirement ratio cut by the People's Bank of China grew. The mixed trend is expected to continue as it coincides with the options expiration day.

As of 1:49 PM, the KOSPI is up 0.08% at 2716.54. In the market today, individuals and institutions are net buyers of 30.6 billion KRW and 34.6 billion KRW respectively, supporting the index. On the other hand, foreign investors showed a net selling intention of 63.3 billion KRW. The KOSPI recorded gains, then turned downward in the morning, and rose again in the afternoon.

Among all stocks, 534 are showing gains. Among the top market capitalization stocks, Samsung Biologics and Samsung SDI are rising more than 3%. According to a report by Daishin Securities, Samsung Biologics is expected to sign a land purchase contract for about 110,000 pyeong (acquisition cost of 426 billion KRW) to start construction of Plant 5 and expand the 2nd Bio Campus in the second quarter of this year, which seems to be influencing the stock price. Researcher Lim Yunjin of Daishin Securities analyzed, "As announced at the JP Morgan Healthcare Conference earlier this year, the visibility of new plant expansion is increasing, accelerating the securing of future growth engines."

Samsung Electronics, the unwavering market leader, recorded 67,700 KRW, down 1.46%, amid no particular positive news and continued net selling by foreign investors. SK Hynix, another semiconductor stock, also fell 2.21% to 110,500 KRW.

By sector, non-metallic minerals rose 1.79%, and pharmaceuticals (1.73%) and textiles/apparel (1.02%) also showed relatively strong gains. The non-metallic minerals sector showed high gains as stocks such as Jeil Abrasives (6.94%), POSCO Chemical (3.94%), and Samil CNS (2.25%) rose.

The KOSPI index, after starting higher, has been fluctuating around the flat line due to selling by foreign and institutional investors. On the 14th, dealers are working in the dealing room of Hana Bank in Euljiro, Seoul. Photo by Moon Honam munonam@

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The KOSDAQ also turned upward in the afternoon. As of this time, it is up 0.33% at 930.40. Individuals are net buyers of 86.2 billion KRW, while foreign and institutional investors show net selling intentions of 65.4 billion KRW and 0.8 billion KRW respectively. The KOSDAQ is also showing mixed trends today. It started with gains, turned downward in the morning, and rose again in the afternoon.

Among all stocks, 714 are up and 625 are down. Among the top market cap stocks, gaming stocks are showing strength. Wemade (5.76%) and Pearl Abyss (5.17%) are recording relatively high gains, and L&F and CJ ENM are also rising more than 3%. By sector, food, beverage, and tobacco (3.24%), broadcasting services (3.21%), digital (2.00%), paper/wood (1.03%), and IT components (1.00%) are recording relatively high gains.

Researcher Lee Kyungmin of Daishin Securities analyzed, "The Bank of Korea raised the base rate today, contrary to market expectations, bringing tightening pressure into the market, leading to weakness in semiconductor stocks and driving the KOSPI down. The confirmation of Q1 earnings results and foreign investor supply and demand factors are limiting market movements." However, he added, "Due to growing expectations for a reserve requirement ratio cut by the People's Bank of China, the Shanghai Composite Index is rising, while the Taiwan Weighted Index is recording a slight decline."

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