[Asia Economy Reporter Eunmo Koo] Both the KOSPI and KOSDAQ markets started the session higher, continuing their upward trend for the fifth consecutive trading day.
On the 6th, the KOSPI opened at 2,369.17, up 11.17 points (0.47%) from the previous trading day. The KOSPI, which started higher, is showing a slight upward trend in the early session due to net buying by individual and foreign investors. As of 9:15 a.m., it was trading at 2,372.29, up 14.29 points (0.61%) from the previous day.
Overnight, major U.S. New York stock indices rose sharply on news of President Donald Trump's early discharge and expectations of a new stimulus agreement. On the 5th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 28,148.64, up 465.83 points (1.68%) from the previous close. The Standard & Poor's (S&P) 500 index rose 60.16 points (1.8%) to 3,408.60, and the tech-heavy Nasdaq index surged 257.47 points (2.32%) to close at 11,332.49.
Sangyoung Seo, a researcher at Kiwoom Securities, explained, "The U.S. stock market rose on news of Trump's discharge and expectations for additional stimulus negotiations. Especially, with the increased likelihood of Democratic candidate Biden winning the U.S. presidential election, sectors such as healthcare, renewable energy, as well as infrastructure investment-related stocks like steel and machinery, led the gains amid expectations for expanded fiscal policies by the proactive Democratic Party." He added, "This U.S.-originated risk asset preference is expected to have a positive impact on the Korean stock market as well."
Looking at the current trading trends by participant, individual and foreign investors are net buyers of 122.6 billion KRW and 24.5 billion KRW respectively, driving the index higher. Conversely, institutional investors are net sellers of 149.7 billion KRW.
By sector, electrical and electronics, machinery, and food and beverages are rising, while telecommunications, services, and textiles and apparel are declining.
Among the top market capitalization stocks, Samsung Electronics, Samsung Biologics, Samsung C&T, SK Hynix, and LG Household & Health Care are rising. On the other hand, SK Telecom, Hyundai Mobis, and Hyundai Motor are falling.
The KOSDAQ index is also maintaining its upward momentum. It opened at 863.74, up 5.35 points (0.62%) from the previous trading day, and is continuing to rise in the early session due to net buying by individual investors. As of 9:15 a.m., it was at 864.29, up 5.90 points (0.69%) from the previous day.
Currently, individual investors are net buyers of 53 billion KRW, while foreign and institutional investors are net sellers of 33.7 billion KRW and 16.6 billion KRW respectively.
By sector, transportation equipment and parts, metals, and telecommunication services are rising, while transportation, entertainment and culture, and internet sectors are declining.
Among the top market capitalization stocks, Alteogen, Kakao Games, HLB, and Seegene are rising. Conversely, MedPacto, SK Materials, and KMW are falling.
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