KOSPI Continues Uptrend... Strong Performance of Inter-Korean Cooperation Stocks

[Image source=Yonhap News]

[Asia Economy Reporter Park Ji-hwan] Following the sharp decline in the Chinese stock market the previous day, the domestic stock market, which closed lower, is continuing its upward trend in the afternoon as well as the morning session. South-North cooperation stocks are showing strength as news broke that the direct communication line between South and North Korea has been restored after 1 year and 4 months.

As of 1:39 PM, the KOSPI is at 3,248.41, up 23.46 points (0.73%) from the previous trading day. The index started at 3,244.43, up 19.48 points (0.60%) from the previous day, maintaining a strong upward trend.

Looking at trading trends by investor type, foreigners and institutions are both buying. Foreigners and institutions net purchased 95.1 billion KRW and 381.4 billion KRW, respectively. On the other hand, individuals net sold 473.3 billion KRW.

In the KOSPI, the rise of large-cap stocks is driving the index higher. Except for SK Hynix, which remained flat, all stocks are on the rise. Samsung Electronics (0.13%), Kakao (0.34%), Samsung Biologics (2.24%), LG Chem (1.96%), Samsung SDI (1.36%), and Celltrion (0.76%) all increased.

Following the news that the South-North direct communication line will be restored after 14 months of disconnection, South-North cooperation stocks are also surging collectively. Hyundai Elevator, the leader in South-North cooperation stocks, is trading up 6.01% at 52,900 KRW. Seondo Electric (4.94%) and Gwangmyeong Electric (3.68%) are also strong. Shinwon, which operated the largest factory in the Kaesong Industrial Complex, surged 23.43%.

At the same time, the KOSDAQ is trading at 1,051.51, up 3.88 points (0.37%) from the previous trading day. The index opened at 1,050.87, up 3.24 points (0.31%) from the previous day.

By investor type, individuals bought 91.5 billion KRW. Foreigners and institutions net sold 46.8 billion KRW and 36.9 billion KRW, respectively.

Among the top 10 market cap stocks, there were mixed movements. Celltrion Healthcare (0.88%), Celltrion Pharm (0.27%), Kakao Games (2.11%), and EcoPro BM (0.46%) rose. Meanwhile, SK Materials (-0.64%) and CJ ENM (-0.63%) declined.