KOSPI Recovers to 2300 Level... KOSDAQ Rises Over 3% to Reach 835 Level

[Asia Economy Reporter Oh Ju-yeon] On the 28th, the domestic stock market closed higher due to a rebound buying spree by foreigners and institutions following last week's sharp decline.

On this day, the KOSPI rose 1.29% from the previous trading day to close at 2308.08. Lee Kyung-min, a researcher at Daishin Securities, analyzed, "Positive news such as the easing of the domestic COVID-19 resurgence and strong industrial profits in China continued, leading to a rebound buying spree by institutions following last week's sharp decline."

On the 25th, the KOSPI index opened at 2295.16, up 0.99% (22.49 points) from the previous trading day, as dealers were working in the Hana Bank dealing room in Jung-gu, Seoul. On the same day, the KOSDAQ index rose 1.36% (11 points) to 817.95, and the won-dollar exchange rate started at 1169.5 won, down 3.2 won from the previous trading day. Photo by Kim Hyun-min kimhyun81@

Among the top market capitalization stocks, Samsung Electronics (0.52%), NAVER (1.19%), Samsung Biologics (1.48%), Hyundai Motor (3.24%), and Kakao (4.98%) rose, while SK Hynix (-0.48%), LG Chem (-0.16%), and Celltrion (-1.35%) declined.

By investor type, individuals and foreigners sold stocks worth 98.6 billion KRW and 62.5 billion KRW respectively, while institutions purchased stocks worth 150 billion KRW.

The KOSDAQ index recorded 835.91, up 3.42% from the previous trading day.

Among the top market capitalization stocks, Seegene (4.88%), HL Biopharma (5.39%), Alteogen (6.21%), and Celltrion Pharm (6.68%) rose.

Seo Sang-young, a researcher at Kiwoom Securities, said, "The Korean stock market started higher supported by the strong U.S. stock market, but showed a tendency for selling as U.S. political uncertainty increased. However, as China's industrial corporate profits increased by 19.1% year-on-year, expectations for earnings improvement rose, expanding the gains."

Researcher Seo added, "This is positive as it alleviates valuation pressure by raising expectations for earnings improvement of Korean companies in October."

He also explained that supply and demand factors, such as foreigners switching to net buying of futures, also drove the index higher.

Researcher Seo said, "Overall, the Korean stock market is estimated to have risen due to a rebound buying spree following last week's sharp decline, along with some favorable factors."