Stock Market Rebound Led by Samsung Electronics and SK Hynix... KOSPI Approaches 2720

by Lee Seonae

Published 19 Apr.2022 13:57(KST)

Updated 19 Apr.2022 14:04(KST)

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 19th, the domestic stock market, which started higher, is maintaining an upward trend of about 1% due to simultaneous ‘buying’ by foreigners and institutions. In particular, the leading stocks Samsung Electronics and SK Hynix are driving the index higher. While individuals are realizing profits, supply and demand are balanced by the ‘buying’ of foreigners and institutions. Although existing negative factors such as the Ukraine crisis and tightening continue to drive market interest rates higher and strengthen the dollar, it is interpreted that the domestic stock market has developed resilience.

As of 1:45 PM, the KOSPI is up 0.91%, and the KOSDAQ is up 1.25%. Both are attempting to break through the 2720 and 930 levels, respectively. The Philadelphia Semiconductor Index in the U.S. rebounded (+1.88%) yesterday after a sharp decline since the end of March, positively influencing domestic semiconductor stock investment sentiment today. Accordingly, Samsung Electronics and SK Hynix are currently showing gains of 1.20% and 3.21%, respectively.

Lee Kyung-min, a researcher at Daishin Securities, said, "The KOSPI has risen about 25 points, with Samsung Electronics and SK Hynix contributing about 10 points of that."

Foreigners and institutions are supporting the index’s upward momentum by recording net purchases. Foreigners are buying approximately 84.7 billion KRW and 132.4 billion KRW in the KOSPI and KOSDAQ markets, respectively. Institutions are recording net purchases of about 212.6 billion KRW and 110.9 billion KRW in both markets. On the other hand, individuals are realizing profits, selling about 286.6 billion KRW and 23.9 billion KRW in the two markets, respectively.

Seo Sang-young, a researcher at Mirae Asset Securities, said, "Although concerns about prolonged high inflation due to the Ukraine war remain a burden, considering that this has already been reflected in the stock market, the impact is expected to be limited. Rather, with the earnings season underway, a stock market showing fluctuations depending on changes in individual stock groups is expected."

Han Ji-young and Kim Se-heon, researchers at Kiwoom Securities, analyzed, "Despite the persistent external uncertainties, the domestic stock market, which showed weakness in the previous trading day, is showing a rebound trend as market attention focuses on the intraday rebound effect of the U.S. stock market and individual earnings issues."

Among the top market capitalization stocks, most are rising, including Celltrion (2.24%), Samsung Electronics (1.25%), Samsung SDI (1%), Naver (1.96%), Kakao (1.38%), POSCO Holdings (1.94%), and Hyundai Motor (1.12%). By KOSPI sector, telecommunications (2.63%), steel and metals (2.07%), medical precision (1.52%), and electrical and electronics (1.38%) are on the rise. Textile and apparel (-1.06%) is weak. Strong sectors in the KOSDAQ are food and tobacco (+3.22%), semiconductors (+2.57%), and IT components (+1.82%). Weak sectors include construction (-0.59%), paper and wood (-0.53%), and other manufacturing (-0.46%).