KOSPI Surpasses 2280 Early in Session, Hits New Annual High... KOSDAQ Rises for 4 Consecutive Days

[Asia Economy Reporter Eunmo Koo] The KOSPI index rose on net purchases by foreign and individual investors, reaching a new yearly high. The KOSDAQ index also continued its upward trend for the fourth consecutive day, supported by buying from individuals and institutions.

On the 30th, the KOSPI opened at 2,275.33, up 12.17 points (0.54%) from the previous trading day. The KOSPI, which started higher, climbed to 2,281.33 in early trading, surpassing the yearly high of 2,277.23 set on January 20. As of 9:20 a.m., it was trading at 2,278.96, up 15.80 points (0.70%) from the previous day.

Overnight, major U.S. stock indices rose, buoyed by the Federal Reserve's continued commitment to economic stimulus. On the 29th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 26,539.57, up 160.29 points (0.61%) from the previous session. The Standard & Poor's (S&P) 500 index rose 40.00 points (1.24%) to 3,258.44, and the tech-heavy Nasdaq index closed at 10,542.94, up 140.85 points (1.35%).

Sangyoung Seo, a researcher at Kiwoom Securities, explained, "Federal Reserve Chair Jerome Powell emphasized the need for additional fiscal stimulus from Congress. He particularly mentioned that government fiscal policy is necessary until the economy recovers, and that both fiscal and monetary policies should be maintained until recovery. This statement implies continued liquidity supply from the Fed and increases risk asset preference." He added, "The Bank of Korea and the Fed announced a six-month extension of their currency swap agreement period, which is expected to positively impact foreign investors' supply and demand due to stabilization in the foreign exchange market."

However, uncertainty over additional stimulus, as mentioned by U.S. President Donald Trump, remains a concern. Seo said, "If this stimulus package does not pass, there is a high possibility of a consumption cliff in the U.S. in August. Also, during the U.S. antitrust hearings, Congress hinted at regulations on large tech companies, which could lead to increased changes in related stocks, posing a burden." He forecasted, "Considering these factors, the Korean stock market will focus on whether foreign investors continue their net buying trend."

Looking at current trading trends by participant, foreign and individual investors are leading the index rise with net purchases of 73.6 billion KRW and 28.1 billion KRW, respectively. In contrast, institutional investors are net sellers with 101.1 billion KRW.

By sector, electrical and electronics, transportation equipment, and medical precision industries are rising, while steel and metal, and telecommunications sectors are declining.

Among the top market capitalization stocks, Hyundai Motor, Samsung Electronics, Kakao, Hyundai Mobis, and Samsung C&T are rising. Conversely, Samsung Biologics, Celltrion, and SK Telecom are falling.

Currently, in the KOSPI market, 515 stocks are rising without any hitting the upper price limit, 281 stocks are falling without any hitting the lower price limit, and 99 stocks are unchanged.

The KOSDAQ index is also maintaining its upward trend for the fourth consecutive trading day. It opened at 812.83, up 4.24 points (0.52%) from the previous day, and is maintaining a rise of around 0.5% supported by net purchases from individual and institutional investors. As of 9:20 a.m., it was at 812.97, up 4.38 points (0.54%) from the previous day.

Currently, individual and institutional investors are net buyers with 26.9 billion KRW and 6.3 billion KRW, respectively, while foreign investors are net sellers with 21.9 billion KRW.

By sector, semiconductors, finance, and IT components are rising, while transportation equipment and parts, distribution, and entertainment and culture sectors are declining.

Among the top market capitalization stocks, Wonik IPS, L&F, Seegene, SK Materials, and Alteogen are rising. Meanwhile, HLB, Celltrion Pharm, and Genexine are falling.

Currently, in the KOSDAQ market, 829 stocks are rising including one hitting the upper price limit, 334 stocks are falling without any hitting the lower price limit, and 143 stocks are unchanged.