Stock Market Rises Over 1% on Economic Reopening Hopes... KOSPI Closes Up at 2029.78

[Asia Economy Reporter Oh Ju-yeon] The domestic stock market rose by more than 1%, with the KOSPI breaking through the 2020 level. As expectations for the reopening of economies worldwide, which had been restricted due to the novel coronavirus infection (COVID-19), increased, sectors such as banking, insurance, automobiles, construction, and chemical industries related to secondary batteries, which had experienced significant declines, led the index's rise. The KOSDAQ index also rose by more than 1%, moving upward in tandem.

According to the Korea Exchange on the 26th, the KOSPI closed at 2029.78, up 1.76% from the previous trading day. Although the intraday gains slowed and the index fell to 1997.94, it rose again supported by expectations for economic reopening in various countries. Seo Sang-young, a researcher at Kiwoom Securities, analyzed, "The expansion of gains in the Chinese stock market, supported by the announcement of policies to support funding for small and medium-sized enterprises, is also a factor improving investor sentiment."

Among the top market capitalization stocks, Samsung Electronics (0.82%), SK Hynix (0.61%), and Samsung Biologics (2.06%) rose. In particular, secondary battery-related stocks such as LG Chem (6.29%) and Samsung SDI (11.49%) saw significant increases.

By supply and demand, individual investors sold a net 480.2 billion KRW worth of stocks in the KOSPI market, while foreigners and institutions bought 9.5 billion KRW and 342.1 billion KRW worth, respectively.

The KOSDAQ index also rose by more than 1% on the day, climbing close to the 730 level. The KOSDAQ closed at 729.11, up 1.28% from the previous trading day.

Individual investors led the index's rise with net purchases worth 69.9 billion KRW, while foreigners and institutions sold 29.0 billion KRW and 20.5 billion KRW worth, respectively.

Among the top market capitalization stocks, Celltrion Healthcare, HL Biopharma, and Celltrion Pharm rose, while Seegene and Alteogen closed lower.

Meanwhile, the U.S. stock market, which will open after the domestic market closes, is expected to start higher, supported by news of economic reopening in various countries worldwide.

Researcher Seo said, "Consumer confidence index is expected to be announced at 88.0, an improvement from the previous month (86.9), and the robustness of psychological indicators will have a positive effect on investor sentiment." However, concerns about a second wave of COVID-19 infections and negative factors related to COVID-19 treatments may pose burdens. Seo added, "Considering that profit-taking sales of non-face-to-face (untact) related stocks have appeared since late last week, the movements of related stocks are noteworthy."