Risk Appetite Strengthens... KOSPI Surges Past 3200 Intraday

Individual and Institutional Buyers Show Strong Demand
KOSDAQ Also Records Over 1% Gain

On the 20th, the KOSPI index and the KRW-USD exchange rate are displayed on the electronic board in the dealing room of Hana Bank in Euljiro, Jung-gu, Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Gong Byung-sun] As risk asset preference strengthened, the KOSPI surpassed the 3,200 mark during the session. Both individual and institutional investors were seen buying KOSPI and KOSDAQ stocks.

According to the Korea Exchange, as of 10:47 a.m. on the 7th, the KOSPI recorded 3,199.74, up 0.66% (21.00 points) compared to the previous trading day. It even rose to 3,200.26 at 10:51 a.m. that day.

The Dow Jones Industrial Average showed strength, which appears to have acted as a positive factor for the domestic stock market. Seosangyoung, a researcher at Mirae Asset Securities, explained, “The domestic stock market continued its upward trend as U.S. Treasury Secretary Janet Yellen made easing remarks regarding interest rate hikes the day before. The continued strength of the Dow also indicates that the spread of risk asset preference sentiment will still have a positive impact.”

Buying by individuals and institutions led to the index rise. Individuals net bought 179.8 billion KRW, and institutions net bought 63.6 billion KRW. Foreigners net sold 239 billion KRW.

Most sectors showed strength. The pharmaceutical sector had the largest increase at 3.75%. This was followed by construction (2.07%), electricity and gas (1.81%), food and beverage (1.78%), and textiles and apparel (1.26%). On the downside were steel and metals (-0.94%), electrical and electronics (-0.45%), medical precision (-0.26%), and chemicals (-0.25%).

Among the top 10 market capitalization stocks, many showed weakness. POSCO had the largest decline at -1.14%, followed by LG Chem (-0.85%), SK Hynix (-0.78%), Samsung Electronics (-0.61%), and Samsung SDI (-0.31%). Celltrion (4.95%), Samsung Biologics (4.60%), Kakao (0.87%), and NAVER (0.14%) rose. Hyundai Motor remained flat.

At the same time, the KOSDAQ recorded 980.35, up 1.07% (10.36 points) from the previous trading day. It also rose to 980.80 at 10:52 a.m. that day.

Rising continued as individuals and institutions bought. Individuals net bought 21.9 billion KRW, and institutions net bought 7.3 billion KRW. Foreigners net sold 23 billion KRW.

Almost all sectors showed strength. Construction had the largest increase at 3.05%, followed by distribution (2.92%), other services (2.00%), pharmaceuticals (1.91%), and digital content (1.37%). Broadcasting services (-1.15%), telecommunications and broadcasting services (-0.88%), and internet (-0.17%) declined.

Most of the top 10 market capitalization stocks rose. Alteogen had the largest increase at 4.95%, followed by Celltrion Healthcare (4.44%), Pearl Abyss (3.07%), Celltrion Pharm (2.98%), Kakao Games (0.76%), HL Biopharma (0.46%), and SK Materials (0.43%). Studio Dragon (-3.29%), CJ ENM (-2.71%), and EcoPro BM (-0.50%) showed weakness.

Meanwhile, there is analysis that attention should be paid to the Chinese market. Researcher Seo said, “We need to focus on China’s April export-import statistics, which affect the domestic stock market,” adding, “China’s April exports are expected to increase by 24.1% year-on-year, somewhat slower than the 30.6% announced last month in dollar terms.” Imports are also expected to increase by 42.5% year-on-year, which is positive.