[Asia Economy Reporter Eunmo Koo] The KOSPI and KOSDAQ indices are showing firm gains in early trading, supported by net buying from individual investors.
On the 21st, the KOSPI opened at 2,363.03, up 4.62 points (0.20%) from the previous trading day. The KOSPI, which started higher, is maintaining a firm upward trend in early trading thanks to individual investors' buying momentum, continuing its three-day consecutive rise. As of 9:20 a.m., it is trading at 2,369.43, up 11.02 points (0.47%) from the previous day.
Overnight, major indices on the New York Stock Exchange rose on expectations of a fiscal stimulus deal. As the deadline for additional COVID-19 relief negotiations approaches, the White House and Congress are in final talks. On the 20th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 28,308.79, up 113.37 points (0.40%) from the previous day. The Standard & Poor's (S&P) 500 index rose 16.20 points (0.47%) to 3,443.12, and the tech-heavy Nasdaq index closed at 11,516.49, up 37.61 points (0.33%).
Sangyoung Seo, a researcher at Kiwoom Securities, said, "The U.S. stock market rose on optimistic expectations for additional stimulus," adding, "Furthermore, the rise in U.S. Treasury yields and international oil prices, along with a weaker dollar, has increased risk asset appetite, which is positive for the Korean stock market." However, he noted, "Since some Republicans still oppose large-scale stimulus, uncertainty regarding the stimulus remains, and considering that some of this was already priced in yesterday, the impact is expected to be limited."
Looking at current trading trends by participant, individual and foreign investors are net buyers of 40.5 billion KRW and 27.9 billion KRW respectively, while institutional investors are net sellers of 72.8 billion KRW.
By sector, paper & wood, electric & gas, and electrical & electronics are rising, while transportation equipment and banking sectors are declining.
Among the top market capitalization stocks, NAVER, Kakao, and Samsung Electronics are rising, whereas Kia Motors, Hyundai Mobis, Hyundai Motor, Celltrion, and SK Hynix are falling.
The KOSDAQ index is also slightly up, showing a recovery trend for the second consecutive day. The KOSDAQ opened at 827.35, up 2.70 points (0.33%) from the previous day, and is maintaining firm gains supported by net buying from individual investors. As of 9:20 a.m., it is at 827.06, up 2.41 points (0.29%) from the previous day.
In terms of current supply and demand, individual investors are net buyers of 68 billion KRW, while foreign and institutional investors are net sellers of 54.9 billion KRW and 12.4 billion KRW respectively.
By sector, transportation equipment & parts, telecommunication services, and software are rising, while transportation, broadcasting services, and computer services are declining.
Among the top market capitalization stocks, Kakao Games, MedPacto, and HLB are rising, while SK Materials, Genexine, Pearl Abyss, and Celltrion Pharm are falling.
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