KOSDAQ Also Maintains 'Cheonsdak' Status
On the afternoon of the 22nd, employees are working in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. [Image source=Yonhap News]
[Asia Economy Reporter Minwoo Lee] The KOSPI and KOSDAQ closed slightly higher, maintaining a firm tone. This is interpreted as reflecting expectations that Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), will make remarks to quell market uncertainties.
On the 22nd, the KOSPI closed at 3,263.88, up 0.71% (23.09 points) from the previous day. After opening with a firm tone at 3,245.79, it widened its gains and settled above the 3,260 level.
Sangyoung Seo, a researcher at Mirae Asset Securities, explained, "Although uncertainties remain across the market due to concerns about liquidity reduction, there appears to be an expectation that Chairman Powell will make statements in Congress to resolve these concerns. There is also a sentiment reflecting forecasts that the Purchasing Managers' Index (PMI) for manufacturing in various countries, to be announced soon, will slightly decline, suggesting liquidity supply will be maintained."
Chairman Powell, on the 21st (local time), appeared before the U.S. House of Representatives' COVID-19 response subcommittee and, in a document outlining his remarks, projected that if the economic recovery continues, inflation will be a temporary phenomenon.
Meanwhile, in the KOSPI market, foreigners were net buyers of 318.5 billion KRW, while individuals and institutions were net sellers of 335.4 billion KRW and 10.2 billion KRW, respectively.
The KOSDAQ closed at 1,011.56, up 0.06% (0.57 points) from the previous day. After opening slightly higher at 1,012.01, it briefly turned downward but maintained the 'Cheonsdak' level. It then reversed to rise again, closing in the 1,011 range.
Among the top 10 market capitalization stocks, more sectors saw gains. Hyundai Motor's increase was the largest at 3.4%, followed by Kia (2.7%), Kakao (2.5%), LG Chem (2.4%), Samsung SDI (0.2%), and Samsung Electronics (0.1%). Meanwhile, Celltrion (-2.3%), NAVER (-1.5%), and Samsung Biologics (-0.9%) declined. SK Hynix remained flat.
In the KOSDAQ market, individuals were the sole net buyers with 227.8 billion KRW. Foreigners and institutions sold 194.6 billion KRW and 28 billion KRW, respectively.
By sector, non-metallic minerals (4.15%), entertainment & culture (1.05%), pharmaceuticals (0.60%), and machinery & equipment (0.49%) saw the largest gains. Distribution (-1.15%), other manufacturing (-0.69%), and internet (-0.53%) sectors declined.
Most of the top 10 market capitalization stocks fell. Seegene's decline was the largest at -4.0%, followed by HL Biotech (-3.8%), EcoPro BM (-2.1%), Celltrion Healthcare (-1.9%), Alteogen (-0.7%), and Kakao Games (-0.1%). Only CJ ENM (0.4%) and SK Materials (0.2%) rose. Pearl Abyss and Celltrion Pharm recorded flat performance.
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