Performance Surprise and Policy Expectations Priced In
"An Important Upward Momentum, But"
"Must Keep Possibility of Increased Volatility Open"
[Asia Economy Reporter Oh Ju-yeon] On the 10th, the domestic stock market closed lower. This was due to foreign and institutional investors selling off amid concerns over the resurgence of the novel coronavirus infection (COVID-19). The ones who fully absorbed this selling were individual investors. On that day, individuals purchased stocks worth more than 1.12 trillion won in total in both the KOSPI and KOSDAQ markets.
The KOSPI, which started higher at the 2170 level, turned to a decline during the session and then widened its losses, barely maintaining the 2140 level. The KOSPI, which dropped 30 points in one day, reduced its losses before the market close and ended the day at 2150.25, down 0.81% from the previous trading day.
The index was driven by individuals as well. In the KOSPI market, individuals net bought stocks worth 1.0372 trillion won, absorbing stocks sold by foreigners and institutions, who sold 345.4 billion won and 708.7 billion won worth respectively.
Among the top market capitalization stocks, Samsung Electronics (-0.19%), SK Hynix (-0.24%), and Samsung Biologics (-1.35%) declined, while NAVER (4.00%) and Celltrion (0.15%) rose.
The KOSDAQ index closed at 772.81, down 0.01% from the previous trading day. By investor type, individuals net bought stocks worth 97.4 billion won, while foreigners and institutions sold 10.9 billion won and 81.4 billion won worth respectively.
Among the top market capitalization stocks, Celltrion Healthcare (-0.37%) and HL Biopharma (-1.25%) declined, while Celltrion Pharm (1.44%) and Seegene (15.31%) closed higher.
Lee Kyung-min, a researcher at Daishin Securities, said, "Today’s domestic stock market showed differentiated performance by sector due to expectations and concerns about Q2 earnings affected by COVID-19," adding, "By sector, the service industry and food and beverage each rose about 0.6%, showing strength, and in the service sector, untact beneficiaries such as internet and software led the rally."
Researcher Lee forecasted, "Corporate earnings surprises and long-term policies and plans will be positive changes and important driving forces for the KOSPI’s upward trend," but also noted, "However, in the short term, as expectations are priced in advance, the possibility of increased volatility should be kept open."
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