KOSPI Closes First Week of New Year Above 3,100, Near 3,150 Level

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] The KOSPI, which ushered in the era of the 3000 index, surged relentlessly, surpassing the 3100 mark and closing the first week of the year on a hot note. Meanwhile, the KOSDAQ index, which attempted to challenge the 1000 mark, ended the session with a slight decline, taking a breather.

On the 8th, the KOSPI closed at 3152.18, up 120.50 points (3.97%) from the previous day. The KOSPI opened at 3040.11, up 8.43 points (0.28%) from the previous trading day, and showed accelerating gains as the day progressed. Around 11 a.m., the KOSPI surpassed the 3100 mark for the first time ever, then expanded its gains further in the afternoon, reaching the 3110 level. After 3 p.m., the increase widened to 4%, briefly exceeding 3160. It then slightly narrowed its gains to close around the 3150 level.

Despite the continuous record highs indicating an overheated market, the Fear Of Missing Out (FOMO) sentiment appears to be driving sustained buying by individual investors. Haedoon Han, a researcher at SK Securities, said, "Aside from price concerns, there are no events affecting the stock market, and the environment surrounding the market remains favorable. Although the seemingly high 3000 level has been reached, the liquidity-driven market is expected to continue for the time being."

Looking at trading trends by participant, foreign investors led the index rise with net purchases of 1.6424 trillion KRW. Conversely, institutions and individual investors realized profits, net selling 1.2461 trillion KRW and 558.8 billion KRW, respectively.

By sector, transportation equipment (12.81%), electrical and electronics (5.83%), manufacturing (4.93%), and services (4.71%) rose, while paper and wood (-1.80%), telecommunications (-1.40%), and banking (-0.39%) declined.

Most of the top market capitalization stocks rose. Hyundai Motor (19.42%) and Hyundai Mobis (18.06%) posted double-digit gains, while Kia (8.41%), Kakao (7.83%), NAVER (7.77%), SK Innovation (7.60%), Samsung Electronics (7.12%), Samsung SDI (5.87%), and Samsung C&T (4.14%) also increased. LG Electronics (-1.67%) and SK Telecom (-1.85%) fell slightly.

The market was led by Hyundai Motor Group stocks following news that Apple may partner with Hyundai Motor Group to launch a self-driving electric vehicle, the so-called ‘Apple Car.’ According to a media report, Apple has proposed cooperation to Hyundai Motor Group for the Apple Car launch and is currently negotiating. Apple plans to collaborate with Hyundai Motor Group not only on electric vehicle production but also on battery development. The Apple Car is targeted for release in 2027.

Expectations for Apple Car cooperation prompted a swift response in Hyundai Motor Group stocks. Hyundai Mobis hit the daily upper limit and recorded a 52-week high, closing at 359,500 KRW, up 18.06% (55,000 KRW) from the previous day.

The record-high streak of Samsung Electronics, the market leader that announced surprise earnings, also continued. Samsung Electronics closed at 88,800 KRW, up 7.19% (5,900 KRW) from the previous day, even briefly reaching 90,000 KRW during the session. Samsung Electronics reported operating profits close to 36 trillion KRW last year, an increase of about 30% compared to the previous year.

Jaeyoon Lee, a researcher at Yuanta Securities, said, "Samsung Electronics appears to have posted solid results despite the impact of COVID-19 last year. The expansion of outsourced production for mid-to-low-end smartphones and efficient marketing expenses helped defend profitability in the IT & Mobile (IM) division." He also noted that cost reductions in memory semiconductors, expansion of non-memory market share, and record-high operating profits in the Consumer Electronics (CE) division contributed significantly.

On the day, 375 KOSPI stocks rose, including one that hit the daily upper limit, while 463 stocks fell with no stocks hitting the daily lower limit. Sixty-eight stocks remained unchanged.

Meanwhile, the KOSDAQ index, which attempted to challenge the 1000 mark, closed slightly down. The KOSDAQ also started the day higher but turned lower around 9:20 a.m. and quietly maintained a slight decline, closing at 987.79, down 1.07 points (0.11%) from the previous day.

By trading participant, individual investors net bought 286.3 billion KRW, while institutions and foreign investors net sold 222.3 billion KRW and 17.9 billion KRW, respectively.

By sector, distribution (3.29%), broadcasting services (2.82%), and telecommunications equipment (2.10%) rose, while other services (-3.17%), textiles and apparel (-1.94%), and information devices (-1.59%) declined.

Among the top market capitalization stocks, CJ ENM (5.75%), Celltrion Healthcare (5.30%), EcoPro BM (4.53%), Celltrion Pharm (2.41%), and Pearl Abyss (2.36%) rose. Conversely, Alteogen (-3.95%), Genexine (-2.51%), and SK Materials (-2.09%) fell.

On the day, 440 KOSDAQ stocks rose, including five that hit the daily upper limit, while 883 stocks fell with no stocks hitting the daily lower limit. Seventy-five stocks remained unchanged.