Celltrion Up 5.54%
KOSDAQ Closes at 978
US and China Inflation Indexes to Be Released Starting Next Week
[Asia Economy Reporter Gong Byung-sun] On the 7th, the KOSPI closed just below the '3200' mark. Despite concerns over U.S. monetary tightening, the stock market was driven up as investors' preference for risk assets had a stronger effect. However, analysts suggest focusing on the U.S. and China's inflation index releases starting next week.
According to the Korea Exchange, the KOSPI closed at 3,197.20, up 0.58% (18.46 points) from the previous trading day. It even rose to 3,205.11 at 2:27 p.m. but failed to close above the 3,200 level.
The preference for risk assets appears to have positively influenced the KOSPI. Seosangyoung, a researcher at Mirae Asset Securities, explained, “The U.S. stock market showed strength in the Dow Jones Industrial Average ahead of the employment report release, spreading risk asset preference due to economic normalization. Although there were concerns regarding tapering discussions, the limited continuity was also a favorable factor for the domestic stock market.”
Institutions led the KOSPI's upward trend, net buying 347.7 billion KRW. Individuals and foreigners net sold 141.8 billion KRW and 252.2 billion KRW, respectively.
Most sectors rose. Pharmaceuticals had the largest gain at 2.98%, followed by construction (2.80%), paper and wood (2.17%), food and beverages (2.12%), and electricity and gas (2.09%). Chemicals (-0.53%), medical precision (-0.21%), and electrical and electronics (-0.12%) declined.
Many of the top market capitalization stocks showed strength. Celltrion had the largest increase at 5.54%, followed by Samsung Biologics (2.68%), POSCO (0.63%), SK Hynix (0.39%), and Hyundai Motor (0.22%). LG Chem (-2.03%), Samsung Electronics (-0.49%), Kakao (-0.43%), and NAVER (-0.14%) showed weakness. Samsung SDI remained flat.
At the same time, the KOSDAQ index closed at 978.30, up 0.86% (8.31 points) from the previous day. It rose to 981.04 at 11:01 a.m., expanding gains to over 1%, but closed in the high 0% range.
Individual buying led the index rise, with individuals purchasing 87.8 billion KRW. Foreigners and institutions sold 44.8 billion KRW and 14.4 billion KRW, respectively.
Most sectors rose. Construction had the largest gain at 4.45%, followed by transportation (3.39%), computer services (3.21%), distribution (3.04%), and other services (1.39%). Broadcasting services (-1.63%), telecommunications broadcasting services (-1.21%), IT components (-1.10%), and internet (-0.24%) declined.
Among the top 10 market capitalization stocks, Celltrion Healthcare had the largest gain at 4.44%, followed by Pearl Abyss (3.79%), Celltrion Pharm (3.45%), HL Biotech (1.53%), SK Materials (0.72%), Alteogen (0.39%), and Kakao Games (0.19%). CJ ENM (-3.74%), Studio Dragon (-3.20%), and EcoPro BM (-0.94%) closed lower.
Meanwhile, analysts emphasize the need to focus on upcoming U.S. and Chinese inflation indicators. On the 11th, China's Consumer Price Index and Producer Price Index will be released, followed by the U.S. Consumer Price Index and Core Consumer Price Index on the 12th. Lee Jae-seon, a researcher at Hana Financial Investment, explained, “The recent inflation market has become sensitive due to positive demand outlooks and supply shortages. If inflationary pressures arise again this month, caution regarding the Fed's early tapering mention is expected to intensify.”
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