KOSPI Continues Weakness Amid Net Selling by Foreigners and Institutions in the Morning

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[Asia Economy Reporter Minji Lee] The KOSPI and KOSDAQ indices continue to show weakness amid net selling by foreigners and institutions.

As of 10:45 a.m. on the 5th, the KOSPI stood at 968.79, down 0.13% (1.30 points) from the previous trading day. The KOSPI opened at 3121.21, up 0.27% (8.43 points) from the previous day, but then turned downward. Looking at investor trends, individuals continued their net buying (KRW 345.3 billion), while foreigners and institutions sold stocks worth KRW 46.9 billion and KRW 303.5 billion, respectively.

By sector, in the KOSPI market, steel & metal (2.53%), medical precision (1.42%), electric & gas (1.16%), and construction (1.14%) showed the largest gains. Among the steel & metal sector, Dongkuk Steel (7.9%), Daehan Steel (4.9%), and Hyundai Steel (4.4%) rose.

Most of the large-cap stocks declined. Naver (-1.19%), LG Chem (-1.33%), Hyundai Motor (-1.28%), Samsung Biologics (-2.02%), and Kakao (-0.20%) also fell.

At the same time, the KOSDAQ index stood at 3104.16, down 0.28% (8.64 points) from the previous trading day. The KOSDAQ opened at 971.04, up 0.10% (0.95 points) from the previous day, but then turned downward. Looking at investor trends, individuals bought stocks worth KRW 32.6 billion, while foreigners and institutions sold stocks worth KRW 22.6 billion and KRW 2.5 billion, respectively.

By sector, in the KOSDAQ market, semiconductors (1.53%), non-metal (1.12%), and finance (1.12%) rose. Among the semiconductor indices, Jeju Semiconductor (3.5%), Unisem (3.9%), and KMH Hightech (2.3%) showed significant gains.

Most of the large-cap stocks declined. Celltrion Healthcare (-2.11%), Celltrion Pharm (-1.68%), Pearl Abyss (-1.85%), Kakao Games (-0.39%), and HLB (-2.84%) also fell.

Experts: “Need to Respond with Earnings Improvement Stocks”

Experts advise responding with earnings improvement stocks as the earnings season begins. As sensitivity to interest rates decreases, style distinctions are becoming less clear, and earnings improvement stocks are expected to lead the market.

Domestic companies have experienced earnings growth trends earlier than the same period last year since the second half of last year, with growth momentum slightly slowing, but upward revisions to earnings forecasts continue. The expectation of earnings improvement based on export growth through the first half of this year is positive for the domestic stock market. Choi Jaewon, a researcher at Kiwoom Securities, explained, “Considering the relatively slightly lower growth momentum compared to advanced country stock markets, focus should be placed on companies with stronger fundamentals through upcoming earnings announcements.”

In the domestic market, earnings upgrades are expected mainly in the semiconductor, chemical, and automobile sectors. Yang Haejung, a researcher at DS Investment & Securities, said, “Since the COVID-19 pandemic has not ended, it is necessary to pay attention to global consumption drivers.” With the possibility of global consumption indicators improving overall, the recovery of global consumption is expected to benefit export-heavy sectors such as automobiles, cosmetics, and apparel among consumer stocks.