KOSPI and KOSDAQ Mixed... Foreigners and Institutions Net Selling

Chemical, Electric, Gas, and Paper & Wood Industries Show Strength
Telecommunication Equipment Stocks Rise on US Infrastructure Investment Optimism

[Asia Economy Reporter Minji Lee] The KOSPI and KOSDAQ indices are showing mixed trends, fluctuating between gains and losses.

As of 10:20 a.m. on the 6th, the KOSPI stood at 3,197.20, down 0.12% (3.86 points) from the previous trading day. The KOSPI opened at 3,196.30, down 0.15% (4.76 points) from the previous day, briefly turned upward but soon reversed to a downward trend and continued to weaken. Looking at investor trends, individual investors bought stocks worth 50.2 billion KRW alone, while foreigners and institutions sold stocks worth 8.4 billion KRW and 35.7 billion KRW, respectively.

By sector, the chemical (1.39%), electric and gas utilities (0.90%), paper and wood (0.72%), and non-metallic minerals (0.70%) indices are showing upward trends. Among the chemical sector, KCC (13%), Cosmo Chemical (6%), Cosmo Advanced Materials (3.9%), Seohung (2%), and KG Chemical (2.1%) are leading the gains. It is analyzed that KCC’s rise is positively influenced by the expectation that silicon will become a new growth driver following spandex.

Among the top market capitalization stocks, Samsung Electronics traded at 77,300 KRW, up 0.91% from the previous day. Other gainers included Samsung Biologics (0.21%), LG Chem (3.31%), Samsung SDI (1.05%), and Hyundai Motor (0.47%). On the other hand, SK Hynix (-0.93%), NAVER (-1.10%), Kakao (-1.92%), and Celltrion (-0.71%) declined.

At the same time, the KOSDAQ index stood at 1,053.73, down 0.01% (0.12 points) from the previous day. The index opened at 1,056.30, up 0.23% (2.45 points) from the previous day. Investor trends show foreigners and institutions sold stocks worth 74 billion KRW and 21.2 billion KRW, respectively, while individual investors bought stocks worth 100.6 billion KRW alone.

By sector, telecommunications equipment (3.81%), paper and wood (1.44%), machinery and equipment (1%), and general electric and electronics (0.87%) indices are on the rise. Among the telecommunications equipment sector, KMw showed a gain of about 9% during the session, reflecting expectations driven by the anticipation of large-scale infrastructure investment in the U.S. Other gainers included Seojin System (7%), Ace Tech (6%), HFR (4.5%), and Oisolution (4%).

Among the top market capitalization stocks, HL Biopharma (1.55%), Kakao Games (1.18%), SK Materials (0.76%), Alteogen (1.41%), and Seegene (0.31%) rose. Conversely, Celltrion Healthcare (-0.51%), Kakao Games (-1.12%), and Celltrion Pharm (-0.61%) declined.

Kim Daejun, a researcher at Korea Investment & Securities, explained, “The relative strength of value stocks, which had continued for the past three weeks after the employment data release, is likely to weaken,” adding, “This is because economic uncertainties abroad could act as a burden due to the sensitivity of the market to economic conditions.” He further said, “Growth stocks, which had relatively taken a short break, will recover quickly.”