KOSPI Mixed Close... Slips Near 3100

Mixed Close in KOSPI Amid Downtrend
Unable to Halt Downtrend Near 3100
Samsung Electronics Stock Moves in Sync with KOSPI
Australian and Chinese Markets Also Close Lower
Next Day Focus on Infrastructure Investment Plans

[Asia Economy Reporter Junho Hwang] On the 31st, the KOSPI closed lower after showing mixed trends. Although it seemed to approach the 3100 level during the session, it failed to stop the downward trend and closed lower than the previous day. Despite net buying by individuals, it could not overcome net selling by foreigners and institutions. The pension fund continued its selling streak for the 11th consecutive trading day.

Asian stock markets also closed lower on the day, as cautious sentiment appeared to prevail amid rising U.S. 10-year Treasury yields and anticipation of the U.S. infrastructure investment plan.

Samsung Electronics' Decline -> KOSPI Decline

On the day, the KOSPI opened at 3,073.39, up 0.11% (3.39 points). About an hour later, it rose to 3,093.89, seemingly reclaiming the 3,100 level. However, it soon declined and fluctuated around the previous day's closing price in the afternoon, finally closing down 0.28% (8.60 points) at 3,061.40. Individuals were net buyers of 640.9 billion KRW, but foreigners and institutions were net sellers of 294.5 billion KRW and 347.5 billion KRW respectively, preventing the index from rising. Among institutions, the pension fund sold stocks for the 11th consecutive trading day including this day.

Samsung Electronics' price movement had the greatest impact on the index's fluctuations. Samsung Electronics rose along with the index but closed lower. Its closing price was 81,400 KRW, down 0.97%. While individuals were net buyers of 231 billion KRW, foreigners were net sellers of 134.7 billion KRW and institutions sold 103.2 billion KRW, pulling down Samsung Electronics' stock price.

Other large-cap stocks also declined. SK Hynix closed down 1.49% at 132,500 KRW. Samsung Electronics Preferred Shares and LG Chem also closed down 1.35% and 0.37% at 73,000 KRW and 805,000 KRW respectively. Hyundai Motor and Samsung SDI also recorded declines of 0.68% and 1.49%, closing at 218,000 KRW and 660,000 KRW respectively.

Among all KOSPI-listed stocks, 474 stocks rose while 378 stocks fell. There were 56 stocks that remained unchanged. By sector, telecommunications showed gains in the 2% range. Telecommunications, non-metallic minerals, and financial sectors recorded increases in the 1% range. Insurance, construction, services, and steel & metals sectors showed slight gains.

Despite the market's fluctuations, stocks such as Yuyu Pharma (Preferred Shares A, B) and Galaxia Moneytree hit the daily upper limit. Hanwha Investment & Securities and Daewon Media also showed gains exceeding 20%.

Asian Stock Markets Also Decline

[Image source=Yonhap News]

The KOSDAQ closed down 0.20% (1.89 points) at 956.17. Individuals were net buyers of 148.5 billion KRW, but foreigners and institutions were net sellers of 73.1 billion KRW and 57.9 billion KRW respectively, leading to the decline. Among all stocks, 569 rose while 730 fell. There were 103 stocks that remained unchanged.

By sector, the information technology sector rose 3.06%, and telecommunications services and internet sectors also showed gains in the 2% range. Construction, publishing & media, and non-metallic sectors maintained increases in the 1% range.

Among the top market cap stocks, Pearl Abyss, which underwent a stock split, closed up 2.12% at 308,100 KRW. CJ ENM also rose 0.78%. On the other hand, Celltrion Healthcare and Celltrion Pharm fell 0.80% and 0.33% respectively. Kakao Games (down 1.13%), EcoPro BM (down 1.27%), Seegene (down 0.69%), and SK Materials (down 1.64%) also declined.

Lee Kyung-min, a researcher at Daishin Securities, said, "The KOSPI was 2% short of a trend reversal," adding, "It surpassed the first major resistance level of 3,060 and reached up to 3,090 but failed to overcome the downward trend formed after the peak." He continued, "It may take some more time, but the KOSPI's upward trend is becoming more solid and stronger," and analyzed, "Rather than rushing, it is time to gradually increase exposure by utilizing market fluctuations."

Meanwhile, Asian stock markets showed mixed trends on the day. The Australian ASX index rose 1.17%, while the Shanghai Composite Index and Hong Kong Hang Seng Index fell 0.66% and 0.71% respectively. Cautious sentiment appeared to prevail as investors awaited the rising U.S. 10-year Treasury yields and U.S. President Joe Biden's large-scale infrastructure investment plan to be announced on the 31st (local time). The U.S. 10-year Treasury yield touched 1.77% during the previous session but fell to 1.708%, then rose again today to 1.74%.

The USD/KRW exchange rate closed at 1,131.80 KRW, down 0.16% from the previous day's closing price.