KOSPI Starts Higher... Optimism on Strong US Stock Market

On the 9th, as the spread of COVID-19 intensifies, the KOSPI index is displayed in the dealing room of Hana Bank in Euljiro, Seoul. On that day, the KOSPI started at 3,245.52, down 7.16 points (0.22%) from the previous session, showing a downward trend. Photo by Moon Honam munonam@

[Asia Economy Reporter Hwang Junho] On the 13th, the stock market opened higher as the US stock market hit an all-time high.

On this day, the KOSPI opened at 3,253.24, up 6.77 points (0.21%). As of 9:06 AM, the gain widened to 0.51%. The market showed an upward trend as individuals and institutions started the session with net buying. Individuals and institutions are buying 7 billion KRW and 13.9 billion KRW respectively. On the other hand, foreigners are net selling 18.1 billion KRW. Among all listed stocks, 625 stocks rose, while 180 stocks fell and 97 stocks remained unchanged.

By sector, retail (1.28%), finance (1.13%), and construction (0.9%) are on the rise. Among retail stocks, Hanse MK is up 20.40% at 12,100 KRW. Hanse MK is considered a theme stock as CEO Kim Dong-young is an alumnus of Kyunggi High School and Seoul National University, like Chairman Choi Dae-hyung of the Board of Audit and Inspection. Following the news of Interpark's sale, its subsidiary iMarket Korea is also trading up 15.87% at 12,050 KRW.

At this time, the top market capitalization stocks are also performing well. Samsung Electronics is trading up 0.38% at 80,000 KRW, and SK Hynix is showing a 1.67% rise. NAVER (0.12%), LG Chem (0.35%), and Samsung SDI (1.92%) are also on the rise.

The KOSDAQ also opened higher on the day. It started at 1,035.68, up 1.04 points (0.10%). While foreigners and institutions are net selling 18.7 billion KRW and 21.2 billion KRW respectively, individuals are net buying 46.9 billion KRW.

Among sectors, paper and wood (1.99%), IT components (1.89%), telecommunications services (1.77%), entertainment (1.57%), and construction (1.49%) are showing notable gains. In the paper and wood sector, Dongwha Enterprise is trading up 4.44% at 80,000 KRW, and Moorim SP is up 1.69% at 3,910 KRW.

Among the top market cap stocks, gaming stocks stand out with gains. Kakao Games is up 0.12% at 80,100 KRW, and Pearl Abyss is up 0.25% at 79,900 KRW.

Han Ji-young, a strategic researcher at Kiwoom Securities, said, "The stock market is expected to show limited price movement today," adding, "Uncertainty about the extent of the domestic consumption shock following the full implementation of social distancing level 4 in the metropolitan area, and the US June consumer price index to be announced after market close, may limit the upper bound of the market today."

Seo Sang-young, a researcher at Mirae Asset Securities Media Content Division, said, "The US stock market is expected to be positively influenced by increased expectations for earnings improvement ahead of the earnings season and the Federal Reserve officials' indications of a dovish monetary policy." However, he added, "Considering that the pandemic is still claimed not to be over in the UK and that some regions in France are restoring curfews, the market is likely to undergo a process of digesting selling pressure rather than expanding gains."