Recovered 3140 Level but Then Stalled
KOSDAQ Also Rose to 995 Level
On the 6th, dealers are working in the dealing room of Hana Bank in Euljiro, Seoul. On this day, the KOSPI index started at 3,123.80, up 2.97 points (0.10%) from the previous trading day, showing an upward trend. Photo by Moon Honam munonam@
[Asia Economy Reporter Gong Byung-sun] The KOSPI is showing a shaky firm-up trend. Analysts suggest that the upward momentum is faltering as foreign investors, who had been net buyers, have turned to net selling.
As of 10:37 a.m. on the 12th, the KOSPI recorded 3,135.61, up 0.12% (3.73 points) from the previous trading day. It rose to 3,141.75 at 9:25 a.m., regaining the 3,140 level, but has since stalled.
The intensifying semiconductor war is impacting the domestic stock market. Labor Gil, a researcher at NH Investment & Securities, said, “U.S. President Joe Biden is pressuring semiconductor leaders by calling them to related meetings,” adding, “Since we need to monitor the semiconductor market situation going forward, supply and demand remain unstable.” However, he noted that it is difficult to interpret this as profit-taking. Researcher Noh added, “Foreign investors who bought a lot of electric and electronic stocks are now generally selling domestic stocks in a programmatic manner,” and “Since they are not selling specific stocks, it is hard to see this as profit-taking.”
Individual investors’ net buying is driving the KOSPI’s firm-up trend. Individuals were net buyers of 378.8 billion KRW. In contrast, institutions and foreigners were net sellers of 202.2 billion KRW and 182.8 billion KRW, respectively.
Sector indices showed mixed results. Chemicals (1.81%), finance (0.84%), textiles and apparel (0.66%), telecommunications (0.46%), and non-metallic minerals (0.20%) rose. Meanwhile, medical precision (-2.70%), construction (-0.87%), machinery (-0.69%), steel and metals (-0.66%), and paper and wood (-0.51%) declined.
Among the top 10 stocks by market capitalization, many fell. SK Hynix’s decline was the largest at -1.79%. It was followed by Celltrion (-1.13%), Samsung SDI (-0.75%), Hyundai Motor (-0.66%), Samsung Biologics (-0.26%), and Samsung Electronics (-0.12%). LG Chem (0.99%), Kia (0.35%), and NAVER (0.26%) rose. Kakao remained flat.
At the same time, the KOSDAQ rose 0.49% (4.88 points) to 994.27. It had climbed to 995.02 at 10:25 a.m.
The KOSDAQ also saw stronger net buying by individuals. Individuals were net buyers of 85.6 billion KRW, while foreigners and institutions were net sellers of 42.3 billion KRW and 25.6 billion KRW, respectively.
Many sector indices rose. Paper and wood led with a 3.67% increase, followed by general electric and electronics (2.78%), other manufacturing (1.75%), construction (1.47%), and pharmaceuticals (1.18%). On the other hand, broadcasting services (-0.71%), transportation equipment and parts (-0.62%), telecommunications and broadcasting services (-0.59%), computer services (-0.58%), and semiconductors (-0.35%) declined.
The top 10 stocks by market capitalization showed mixed results. Ecopro BM led with a 9.38% rise, attributed to the resolution of uncertainty after its major client SK Innovation settled its lawsuit with LG Energy Solution. It was followed by SK Materials (2.25%), Kakao Games (2.22%), Seegene (2.19%), and Pearl Abyss (0.86%). Alteogen (-3.37%), HLB (-1.40%), Studio Dragon (-0.47%), Celltrion Healthcare (-0.39%), and Celltrion Pharm (-0.28%) declined.
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