KOSPI Rebounds in One Day, Recovers to '3190 Level'

[Image source=Yonhap News]

[Asia Economy Reporter Jihwan Park] The KOSPI successfully rebounded after falling by more than 1.5% the previous day. This is interpreted as reflecting the overnight rise in the US stock market due to expectations of additional stimulus measures and economic reopening, along with the view that the domestic market correction the day before was somewhat excessive.

As of 9:15 a.m. on the 22nd, the KOSPI stood at 3,192.05, up 0.64% (20.39 points) from the previous trading day. The KOSPI opened the day at 3,174.52, up 0.09% (2.86 points) from the previous day. The previous day, the KOSPI fell below 3,200 just one day after reaching an all-time high by surpassing the 3,220 level. Foreign investors, who had been leading the index with continuous net buying, sold more than 1 trillion won net, and institutions also sold stocks worth about 1 trillion won, leading to the index decline.

Overnight, the US stock market closed higher with the Dow Jones Industrial Average up 316.01 points (0.93%) at 34,137.31. The Standard & Poor's (S&P) 500 index ended at 4,173.42, up 38.48 points (0.93%), and the Nasdaq index closed at 13,950.22, up 163.95 points (1.19%).

By investor type, individuals and foreigners were net buyers. Individuals showed a net buying advantage of 130 billion won, and foreigners also purchased stocks worth 5.2 billion won. In contrast, institutions sold stocks worth 139.9 billion won.

Among the top market capitalization stocks, most showed gains. Samsung Electronics rose 0.48% to 83,000 won compared to the previous day. SK Hynix (1.89%), NAVER (0.66%), LG Chem (1.39%), and Kakao (0.42%) also increased. On the other hand, Samsung Biologics fell by 1.92%.

At the same time, the KOSDAQ index stood at 1,026.81, up 0.45% (4.59 points) from the previous day. The index opened at 1,023.65, up 0.14% (1.43 points) from the previous day.

By investor type, individuals were net buyers of stocks worth 42.6 billion won, while foreigners and institutions were net sellers of 35.9 billion won and 4.5 billion won, respectively.

Among the top market capitalization stocks, there were mixed movements. Celltrion Pharm (-0.67%) and Seegene (-2.64%) declined. Pearl Abyss (0.94%), Kakao Games (1.43%), and EcoPro BM (1.49%) rose.

Kiwoom Securities economist Yumi Kim said, "The domestic stock market is attempting a rebound as low prices and technical buying flows are entering amid the perception that the sharp decline the previous day was excessive," adding, "It is necessary to pay attention to whether COVID-19 affected stocks and cyclical stocks rebound, as seen in the US stock market the previous day."