[Asia Economy Reporter Eunmo Koo] The KOSPI index has recovered to the 1930 level in early trading, supported by net buying from individual investors, and is challenging the 1940 level. The KOSDAQ index also continued its upward trend for the second consecutive day, regaining the 650 level.
On the 28th, the KOSPI opened at 1931.25, up 8.48 points (0.44%) from the previous trading day. The KOSPI, which started higher, gradually expanded its gains in early trading due to net buying by individual investors, recording 1935.93, up 13.16 points (0.68%) as of 9:20 a.m.
Overnight, major indices on the New York Stock Exchange rose despite a sharp drop in international oil prices, buoyed by expectations of economic reopening in the U.S. and other countries. On the 27th (Eastern Time), the Dow Jones Industrial Average closed at 24,133.78, up 358.51 points (1.51%). The Standard & Poor's (S&P) 500 index rose 41.74 points (1.47%) to 2,878.48, and the tech-heavy Nasdaq closed up 95.64 points (1.11%) at 8,730.16.
Sangyoung Seo, a researcher at Kiwoom Securities, expects, “Considering that the strong U.S. stock market has already been priced in by the Korean market, the impact on the Korean stock market today will be limited.” Seo added, “On the contrary, the fact that international oil prices plunged 30% intraday, increasing volatility, and Boeing’s CEO’s remark that it may take 2 to 3 years for air travel to normalize, suggesting that normalization will not be easy despite the U.S. economic reopening, indicates that the upward momentum is unlikely to continue.”
Looking at the current trading trends by participant, individual investors are leading the index rise with net buying of 113.9 billion KRW. In contrast, institutional and foreign investors are net sellers with 98.7 billion KRW and 18.3 billion KRW, respectively.
By sector, banking, finance, electric and gas utilities, and construction are rising, while transportation and warehousing, and paper and wood sectors are declining.
Among the top market capitalization stocks, LG Chem, Korea Electric Power Corporation, Samsung SDI, Hyundai Motor, and SK Telecom are rising. Conversely, LG Household & Health Care and NAVER are falling.
Currently, in the KOSPI market, 577 stocks are rising without any hitting the upper limit, 220 stocks are falling without any hitting the lower limit, and 92 stocks are unchanged.
The KOSDAQ index also gradually expanded its gains in early trading, regaining the 650 level. The KOSDAQ opened at 649.46, up 2.60 points (0.40%) from the previous day, and is being slightly lifted by net buying from individual investors. As of 9:20 a.m., it is at 651.01, up 4.15 points (0.64%).
Regarding current supply and demand, similar to the KOSPI, individual investors are net buyers with 87.5 billion KRW, while foreign and institutional investors are net sellers with 50.6 billion KRW and 26.9 billion KRW, respectively.
By sector, medical and precision instruments, computer services, and general electric and electronics are rising, while transportation and publishing and media replication sectors are falling.
Among the top market capitalization stocks, Genexine, Paradise, EcoPro BM, and CJ ENM are rising. Conversely, SK Materials, Pearl Abyss, and Celltrion Pharm are falling.
Currently, in the KOSDAQ market, including one stock hitting the upper limit, 832 stocks are rising, 352 stocks are falling without any hitting the lower limit, and 104 stocks are unchanged.
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