KOSPI Closes Up 1.07%... Reenters 80,000 Level

KOSPI Closes Up 1.07%
Regional Markets Rally Amid US Tightening Concerns
Samsung Electronics Reenters 80,000 Won Range

[Asia Economy Reporter Junho Hwang] On the 14th, the KOSPI rose by as much as 1.07%, supported by net buying from individuals and institutions. Foreign investors sold for the fourth consecutive trading day through this date. Analysts say the domestic stock market rose as it digested concerns about U.S. tightening and followed the strong performance of neighboring countries' stock markets.

On that day, the KOSPI closed at 3,155.56, up 1.07%. It showed strength from the early session and maintained gains until the close. Net buying by individuals stood out. Individuals purchased 353.1 billion KRW, driving the market's rise. Institutions also net bought 36.6 billion KRW. On the other hand, foreigners net sold 381.2 billion KRW. This marked the fourth consecutive trading day of net selling by foreigners. Among all stocks, 522 rose, 332 fell, and 53 remained unchanged.

By sector, the pharmaceutical sector's rise was notable. Samsung Biologics' stock price surged significantly after it did not deny the contract manufacturing (CMO) of Moderna's COVID-19 vaccine in South Korea. On that day, Samsung Biologics issued a clarification regarding rumors or reports, stating, "There is currently no confirmation, so verification is not possible," and "We will re-announce at a time when confirmation is possible or within one month." Accordingly, Samsung Biologics closed up 9.47% at 948,000 KRW.

In the medical precision sector, KC Tech rose 5.78%, Mirae Industry 3.45%, and Dentium 3.22%, showing gains exceeding 3%. The electrical and electronics, distribution, and textile and apparel sectors also closed up about 1%.

Most of the top market capitalization stocks closed higher that day. Samsung Electronics, which closed in the 70,000 KRW range the previous day, regained the 80,000 KRW level. The closing price was 81,000 KRW, up 2.04% from the previous day. SK Hynix also recovered from the previous day's weakness and closed up 1.28% at 119,000 KRW. Samsung SDI (4.49%), Celltrion (1.70%), and LG Chem (0.82%) also showed upward trends.

The KOSDAQ also rose 2.29% that day, closing at 967.12, up 15.35 from the previous day's close. While individuals net sold 90.8 billion KRW, foreigners and institutions net bought 77 billion KRW and 15 billion KRW, respectively. Among all stocks, 924 rose and 391 fell.

By sector, semiconductors rose 3.69%, distribution 2.84%, paper and wood 2.65%, and entertainment 2.27%, showing notable gains. Among the top market cap stocks, all except Pearl Abyss, which fell 1.89%, showed gains. In particular, EcoPro BM rose 4.29%, Celltrion Healthcare 3.36%, and Celltrion Pharm 2.48%.

Sangyoung Seo, a researcher at Mirae Asset Securities Research Center, said, "The market rose together due to expectations of U.S. economic normalization, rebound buying in the Japanese stock market, and a reduction in COVID-19 cases in India."

Kyungmin Lee, a researcher at Daishin Securities, said, "The KOSPI is attempting to settle above the 3,150 level, supported by four consecutive days of net buying by individuals and net futures buying by foreigners," adding, "Concerns about U.S. inflation levels exceeding market expectations and early normalization of monetary policy have already been digested. At the stock level, the rebound in the KOSPI was led by strength in semiconductors and secondary battery stocks, which had recently been weak due to inflation and interest rate pressures."