KOSPI Mixed After Hitting Record High... KOSDAQ Recovers Above 900 Level

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] The KOSPI briefly hit a new all-time high again in early trading but has since shown mixed movements, alternating between gains and losses. The KOSDAQ index recovered to the 900 level for the first time in about two months.

On the 3rd, the KOSPI opened at 2,686.38, up 10.48 points (0.39%) from the previous trading day. After closing at a record high of 2,675.90 the day before, the KOSPI climbed to another record high of 2,689.88 in early trading but has since shown mixed trends. As of 10:25 a.m., it was at 2,682.77, up 6.87 points (0.26%) from the previous day.

Overnight, major U.S. stock indices closed mixed amid weak private employment data but rising hopes for a stimulus package. On the 2nd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 29,883.79, up 59.87 points (0.20%) from the previous session. The Standard & Poor's (S&P) 500 index closed at 3,669.01, up 6.56 points (0.18%), while the tech-heavy Nasdaq index closed down 5.74 points (0.05%) at 12,349.37.

Seosangyoung, a researcher at Kiwoom Securities, analyzed, "Federal Reserve Chairman Jerome Powell expressed confidence in the economic recovery, and House Speaker Nancy Pelosi claimed that negotiations would be based on a $900 billion stimulus package and that an agreement would be reached, which should positively influence investor sentiment."

However, he added, "Concerns remain as the U.S. real economy, including employment, shows signs of contraction, and the Fed mentioned in the Beige Book that the recovery pace is slowing. Additionally, President-elect Joe Biden's assertion that he does not intend to withdraw tariffs imposed on China by President Donald Trump raises further worries."

Looking at current trading trends by participant, institutions and foreign investors are net sellers of 214.7 billion KRW and 14.4 billion KRW respectively, realizing profits. In contrast, individual investors are net buyers of 234.3 billion KRW.

By sector, electric and gas utilities, electrical and electronics, services, and medical precision industries are rising, while paper and wood, insurance, and securities sectors are declining.

Among the top market capitalization stocks, SK Hynix, Celltrion, Samsung Electronics, and NAVER are rising. Conversely, LG Chem, Samsung SDI, Kakao, and Hyundai Mobis are falling.

Among individual stocks, Samsung Electronics' share price surpassed 70,000 KRW for the first time ever. This is interpreted as driven by expectations of a rebound in the semiconductor industry and continued growth in the foundry (contract manufacturing) sector.

The KOSDAQ index opened at 901.61, up 2.27 points (0.25%) from the previous trading day. The KOSDAQ index, which started higher, is maintaining a firm tone in early trading supported by net buying from individual investors. As of 10:25 a.m., it was at 901.80, up 2.46 points (0.27%) from the previous day.

Regarding current supply and demand, similar to the KOSPI, foreign and institutional investors are net sellers of 61.7 billion KRW and 43.0 billion KRW respectively, while individual investors are net buyers of 120.9 billion KRW.

By sector, digital content, distribution, and entertainment culture sectors are rising, while paper and wood, food and tobacco, and computer services sectors are declining.

Among the top market capitalization stocks, Celltrion Pharm is surging over 10%, with Pearl Abyss, Celltrion Healthcare, and Studio Dragon also rising. On the other hand, Alteogen, KMW, and Hugel are declining.