KOSPI Starts Third Consecutive Day of Gains, Challenges 2200 Level... KOSDAQ Rises Nearly 1%

[Asia Economy Reporter Koo Eun-mo] The KOSPI has started its third consecutive day of gains, challenging to recover the 2200 level. The KOSDAQ index is also showing an increase of nearly 1%.

On the 6th, the KOSPI opened at 2,184.77, up 19.14 points (0.88%) from the previous trading day. The KOSPI, which started higher, rose more than 1% in the early session due to net buying by foreign and institutional investors, approaching the 2200 level. As of 9:25 a.m., it was trading at 2,191.66, up 26.03 points (1.20%) from the previous day.

The previous day, the KOSPI closed at 2,165.6, up 0.36% from the previous trading day, reflecting the strength of global stock markets. Global markets showed strength amid growing expectations for economic stimulus from the Chinese government, leading to net buying by individuals and foreigners, which drove the index higher. However, the rise was limited as financial investment-focused institutions continued to sell large-scale profit-taking stocks. Meanwhile, Amorepacific Group shares fell after announcing disappointing annual results.

Overnight, major indices on the New York Stock Exchange rose sharply due to strong U.S. private employment data and expectations for the development of new COVID-19 treatments. On the 5th (Eastern Time), the Dow Jones Industrial Average closed at 29,290.85, up 483.22 points (1.68%) from the previous session. The Standard & Poor's (S&P) 500 index rose 37.10 points (1.13%) to 3,334.69, and the tech-heavy Nasdaq closed up 40.71 points (0.43%) at 9,508.68.

Looking at trading trends by participant, foreign and institutional investors are leading the index rise with net purchases of 42.3 billion KRW and 22.2 billion KRW, respectively. In contrast, individual investors are net sellers with 74.7 billion KRW.

By sector, steel & metals, transportation equipment, and construction are rising, while non-metallic minerals are falling.

Among the top market capitalization stocks, POSCO, Hyundai Motor, Samsung Biologics, LG Household & Health Care, and Samsung C&T are rising. On the other hand, Samsung SDI, LG Chem, and Shinhan Financial Group are declining.

Currently, in the KOSPI market, 703 stocks are rising, including Shinpung Pharmaceutical Preferred shares which hit the upper limit, while 120 stocks are falling with no stocks hitting the lower limit. Sixty stocks are unchanged.

The KOSDAQ index is also showing an upward trend. It opened at 665.94, up 4.62 points (0.70%) from the previous day, and is showing a nearly 1% increase in the early session supported by net buying from foreign and individual investors. As of 9:25 a.m., it was trading at 667.14, up 5.82 points (0.88%) from the previous day.

By participant, foreign and individual investors are net buyers with 1.3 billion KRW and 4.8 billion KRW, respectively, while institutional investors are net sellers with 5.7 billion KRW.

By sector, other manufacturing, machinery & equipment, and distribution are rising, while paper & wood and computer services are falling.

Most of the top market capitalization stocks in the KOSDAQ market are rising. Mezzion, HLB, Celltrion Healthcare, Hugel, and Medytox are recording relatively high gains. In contrast, KMW and SK Materials are slightly down.

Currently, in the KOSDAQ market, 1,002 stocks are rising with no stocks hitting the upper limit, 219 stocks are falling with no stocks hitting the lower limit, and 94 stocks are unchanged.