KOSPI Slightly Up Early on Strong Individual Net Buying... KOSDAQ Recovers Over 1%

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] The KOSPI is showing a firm upward trend in the early session, driven by net buying from individual investors. The KOSDAQ index is also rising more than 1%, partially recovering from the previous day's slump.

On the 23rd, the KOSPI opened at 2,352.56, up 19.97 points (0.86%) from the previous trading day. The KOSPI, which started the day higher, is maintaining a firm upward trend in the early session due to net buying by individual investors. As of 9:17 a.m., it is trading at 2,340.41, up 7.82 points (0.34%) from the previous day.

Major indices on the New York Stock Exchange rose, supported by strength in technology stocks despite concerns over tightened lockdown measures due to the spread of COVID-19. On the 22nd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 27,288.18, up 140.48 points (0.52%) from the previous day. The Standard & Poor's (S&P) 500 index closed at 3,315.57, up 34.51 points (1.05%), and the tech-heavy Nasdaq index closed at 10,963.64, up 184.84 points (1.71%).

Sangyoung Seo, a researcher at Kiwoom Securities, said, "The U.S. stock market showed strength as rebound buying centered on large technology stocks flowed in, which will have a positive impact on the Korean stock market as well." He added, "However, since Federal Reserve Chairman Jerome Powell continues to express caution about additional stimulus measures during the House hearing, the rise will be limited."

Looking at the current trading trends by participant, individual investors are net buyers with 209.8 billion KRW. In contrast, institutional and foreign investors are net sellers with 136 billion KRW and 61.9 billion KRW, respectively.

By sector, service industries, medical precision, and paper & wood are rising, while telecommunications, steel & metals are declining.

Among the top market capitalization stocks, Kakao, NAVER, Hyundai Motor, Celltrion, and Samsung C&T are rising. On the other hand, Samsung Biologics, SK Hynix, and LG Household & Health Care are falling.

The KOSDAQ index is also rising. It opened at 855.57, up 12.85 points (1.52%) from the previous trading day, and is recovering above the 850 level with more than a 1% increase in the early session. As of 9:17 a.m., it is trading at 852.04, up 9.32 points (1.11%) from the previous day.

Regarding the current supply and demand situation, similar to the KOSPI, individual investors are net buyers with 33.7 billion KRW, while institutional and foreign investors are net sellers with 27.7 billion KRW and 5.4 billion KRW, respectively.

By sector, software, internet, and broadcasting services are rising.

Among the top market capitalization stocks, Kakao Games, CJ ENM, Genexine, Hugel, and Celltrion Healthcare are rising. Conversely, Pearl Abyss, HLB, and Seegene are falling.