KOSPI Hits Record High Amid Mixed Trends... Strength in Stocks Related to Celltrion

Closing at 3252.13, Surpassing the All-Time High Closing Price Recorded on the 7th
KOSDAQ Approaches 1000 Amid Individual and Institutional 'Buying'

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] Ahead of the U.S. Federal Open Market Committee (FOMC) meeting scheduled for the 15th (local time), the KOSPI showed mixed trends but closed at an all-time high. The KOSDAQ rose to just below the 1000-point mark, supported by stocks related to Celltrion.

On the 14th, the KOSPI closed at 3,252.13, up 0.09% (2.81 points) from the previous trading day. The KOSPI fluctuated between gains and losses during the day but narrowed its losses in the afternoon, showing a firm upward trend.

With this, the KOSPI rose for the third consecutive trading day, surpassing the previous closing record high of 3,252.12 set on the 7th. Currently, the KOSPI has maintained the 3,200 level for 11 consecutive trading days since the 31st of last month.

This is interpreted as little volatility ahead of the FOMC. It is expected that the FOMC will make only general remarks regarding asset purchase tapering, without announcing specific plans due to recent qualitative weaknesses in employment. Even if growth and inflation forecasts are slightly revised upward, significant changes are not anticipated.

Park Sang-hyun, a researcher at Hi Investment & Securities, explained, “This tapering signal is not expected to be at the level of the tightening shock seen in 2013,” adding, “At that time, emerging financial markets such as China were severely impacted, but China’s current economic situation differs from that of 2013.” However, he suggested that attention should be paid more to potential risks arising from credit risk rather than tapering risk.

Individual investors’ buying momentum continued in a firm upward trend. Individuals net purchased 354.5 billion KRW. Foreigners and institutions net sold 24.3 billion KRW and 333.3 billion KRW, respectively.

Most sectors declined. The securities sector fell the most by 0.96%, followed by finance (-0.82%), insurance (-0.66%), telecommunications (-0.61%), and steel & metals (-0.55%). Meanwhile, paper & wood (3.02%), services (2.21%), pharmaceuticals (1.95%), electric & gas utilities (1.83%), and non-metallic minerals (1.15%) rose.

The top 10 stocks by market capitalization showed mixed results. Celltrion’s rise of 5.84% was the largest. The positive news that Celltrion’s COVID-19 treatment, Rekirona, demonstrated efficacy and safety in global Phase 3 clinical trials acted as a catalyst. Following were Kakao (5.17%), NAVER (3.89%), Samsung Biologics (0.95%), and Samsung SDI (0.16%). LG Chem (-2.71%), Kia (-1.45%), SK Hynix (-0.78%), Samsung Electronics (-0.62%), and Hyundai Motor (-0.21%) declined.

The KOSDAQ closed at 997.41, up 0.63% (6.28 points) from the previous day. At 11:59 a.m., it reached 998.85, just shy of the 1000-point mark.

Buying by individuals and institutions was strong. Individuals and institutions purchased 12.9 billion KRW and 22 billion KRW, respectively. Foreigners net sold 32 billion KRW.

Sector indices were mixed. The retail sector rose the most by 3.19%, followed by pharmaceuticals (2.08%), digital content (1.24%), paper & wood (1.11%), and metals (1.03%). Meanwhile, finance (-0.97%), textiles & apparel (-0.89%), food & tobacco (-0.73%), broadcasting services (-0.67%), and construction (-0.58%) declined.

All of the top 10 stocks by market capitalization except CJ ENM showed strength. Celltrion Pharm led with a 12.82% increase. Following were Seegene (5.45%), Celltrion Healthcare (4.93%), Pearl Abyss (3.72%), Alteogen (3.32%), Kakao Games (2.12%), SK Materials (0.32%), HL B (0.30%), and EcoPro BM (0.05%). CJ ENM fell by 1.49%.