Despite Concerns Over COVID-19 Third Wave, Stock Market Rises... KOSPI Breaks Previous High, Surpasses 2580 Level

[Asia Economy Reporter Oh Ju-yeon] As the novel coronavirus infection (COVID-19) resurges, social distancing in the Seoul metropolitan area will be raised to level 2 starting from midnight on the 24th. However, despite concerns over the third wave of COVID-19, the domestic stock market continues its upward trend.

According to the Korea Exchange on the 23rd, the KOSPI opened at 2560.04, up 0.26% from the previous trading day, and surpassed the 2580 mark at 9:40 a.m., reaching 2584.22, setting a new yearly high. Although COVID-19 cases are rising again, the unstoppable run toward the 2600 level on the KOSPI continues.

This rise is thanks to net buying by foreigners, which has continued for 13 trading days. Since November, foreigners have scooped up stocks worth 5.6 trillion won in the KOSPI market. This contrasts with individuals and institutions, who sold stocks worth 5.1317 trillion won and 330.5 billion won, respectively.

Foreigners' net buying continues today as well. As of 9:35 a.m., foreigners purchased stocks worth 173.9 billion won, while individuals and institutions net sold stocks worth 68 billion won and 97.8 billion won, respectively.

Among the top market capitalization stocks, Samsung Electronics (2.94%), SK Hynix (2.69%), Samsung Biologics (1.25%), LG Chem (2.76%), Celltrion (1.35%), Hyundai Motor (1.13%), and Samsung SDI (1.75%) rose, while NAVER and LG Household & Health Care slightly declined.

The KOSDAQ index also maintained the 870 level, recording 872.64, up 0.28% from the previous trading day.

In the KOSDAQ market, individual investors show strong buying momentum. At this time, individuals net bought stocks worth 67.8 billion won, while foreigners and institutions net sold stocks worth 26.1 billion won and 41.9 billion won, respectively.

Among the top market capitalization stocks, Celltrion Healthcare (1.72%), Seegene (1.28%), HL Biopharma (2.08%), Celltrion Pharm (4.58%), Alteogen (0.70%), and Kakao Games (0.73%) rose.

Lee Kyung-min, a researcher at Daishin Securities, said, "In the upcoming additional rise phase of the KOSPI, sector- and stock-specific rotation is expected to unfold. The sectors that have recently shown strength are those with poor returns this year or sectors with low recovery rates due to COVID-19. Therefore, a short-term trading strategy focusing on guarding the threshold of neglected sectors is considered effective."