KOSPI Ends Flat Around 2390 on Individual Net Buying Pressure

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] On the 11th, despite simultaneous selling by foreign and institutional investors, the KOSPI index closed at the 2390 level, supported by net buying from individual investors.

According to the Korea Exchange, the KOSPI recorded 2396.69, down 0.21 points (0.01%) from the previous trading day. The index opened at 2389.76, down 6.72 points (0.28%) from the previous close, showing a weak trend before reversing to rise near the end of the session.

The market was influenced by the expanded losses in major tech stocks such as Apple and Nikola in the New York stock market overnight and investor sentiment regarding whether the government would continue the social distancing level 2.5 measures.

Overnight, the New York stock market fell as major technology companies' stock prices continued to show unstable trends. The Dow Jones Industrial Average dropped 1.45%, and the tech-heavy Nasdaq index fell 1.99%.

In South Korea, 176 new confirmed cases of COVID-19 were reported. Although the number has remained in the 100s for nine consecutive days, it increased compared to the previous day. The government plans to decide over the weekend whether to end or extend the social distancing 'level 2.5' measures.

Seosangyoung, a researcher at Kiwoom Securities, said, "It is necessary to pay attention to the fact that due to recent increased volatility in major U.S. tech stocks, investors may now focus more on corporate value," adding, "This potential change in investor sentiment will likely lead the domestic stock market to focus more on current corporate value rather than future value."

In the KOSPI market, individuals net bought 450.7 billion KRW. In contrast, foreigners and institutions net sold 165.5 billion KRW and 322.1 billion KRW, respectively.

Most of the top market capitalization stocks closed lower. Among the top market cap stocks, SK Hynix (2.35%) and Hyundai Motor (1.48%) rose. Samsung Electronics (-0.34%), Samsung Biologics (-0.39%), and NAVER (-0.49%) declined.

The KOSDAQ index closed at 888.40, up 4.10 points (0.46%) from the previous trading day. The index opened at 881.23, down 3.07 points (0.35%) from the previous close, narrowed losses, and fluctuated around the flat line.

Individuals led the index with net buying of 512.4 billion KRW. Foreigners and institutions net sold 192.0 billion KRW and 233.1 billion KRW, respectively.

Among the top market cap stocks, Kakao Games, on its second day of listing, rose to the upper price limit (29.97%). Kakao Games quickly rose to third place in market capitalization. Most stocks, including Celltrion Healthcare (-1.37%), Seegene (-0.44%), Alteogen (-1.53%), HLB (-2.10%), Celltrion Pharm (-1.45%), and Genexine (-1.92%), declined.