Is a Rebound Buying Force Emerging? KOSPI Rises Back with Support from Individuals and Institutions

Naver and Kakao Rebound
KOSDAQ Shows Mixed Trends... Ecopro BM Intra-day Gains Exceed 10%

[Asia Economy Reporter Gong Byung-sun] The KOSPI is rebounding, supported by buying from individuals and institutions. Although the New York stock market closed lower on the 9th (local time) amid concerns about liquidity tightening, it appears that the domestic market has already priced in these concerns. Meanwhile, platform companies such as Naver and Kakao, which had recently plunged, also showed signs of recovery.

As of 11:01 a.m. on the 10th, the KOSPI stood at 3,123.12, up 0.27% (8.42 points) from the previous day. The index started the day higher but turned lower around 9:33 a.m. It then rebounded and turned positive again.

This is interpreted as a sign of firm gains due to rebound buying. Although all New York indices closed lower on the 9th, the domestic market had already factored in related issues such as the Bank of Canada governor's remarks on interest rate hikes. The Dow Jones Industrial Average, S&P 500, and Nasdaq fell by 0.43%, 0.46%, and 0.25%, respectively, compared to the previous day. The KOSPI had closed down 1.53% (48 points) the day before amid concerns about a global economic slowdown.

Seo Sang-young, a researcher at Mirae Asset Securities, explained, "It seems that rebound buying is coming in after the previous day's decline. With major variables such as U.S. and China’s real economy indicators and U.S. inflation data scheduled for release starting next week, sectoral differentiation is more likely than a broad increase in gains."

Buying by individuals and institutions led to the index's rise. Individuals and institutions net purchased 246.4 billion KRW and 75.9 billion KRW, respectively. Foreigners net sold 323.2 billion KRW.

Most sectors rose. Insurance saw the largest gain at 0.93%, followed by textiles and apparel (0.81%), telecommunications (0.81%), services (0.69%), and transportation and warehousing (0.67%). Sectors that declined included banking (-3.63%), transportation equipment (-1.78%), medical precision (-1.46%), and machinery (-0.77%).

The top 10 stocks by market capitalization showed mixed results. NAVER posted the largest gain at 3.51%, followed by Kakao (2.72%), Samsung Biologics (1.10%), Samsung SDI (1.07%), and SK Hynix (0.97%). Kia (-4.30%), Hyundai Motor (-1.44%), Celltrion (-0.74%), LG Chem (-0.67%), and Samsung Electronics (-0.40%) declined.

At the same time, the KOSDAQ index rose slightly by 0.01% (0.11 points) to 1,034.73. The KOSDAQ started higher but turned lower around 9:32 a.m., then rebounded, showing a mixed trend.

Buying by individuals and foreigners was relatively strong. Individuals and foreigners net purchased 64.9 billion KRW and 13.8 billion KRW, respectively. Institutions net sold 69.3 billion KRW.

Almost all sectors declined. Publishing and media reproduction posted the largest gain at 1.54%. Meanwhile, software (-1.22%), digital content (-1.17%), IT S/W & SVC (-1.10%), and internet (-1.01%) sectors fell. General electric and electronics (3.52%), IT components (0.94%), finance (0.35%), IT hardware (0.21%), and textiles and apparel (0.11%) rose.

The top 10 stocks by market capitalization showed mixed results. EcoPro BM posted the largest gain at 10.07%, buoyed by news of a long-term supply contract worth 10 trillion KRW with SK Innovation. It was followed by L&F (3.61%), Kakao Games (1.78%), HLB (0.61%), and Celltrion Pharm (0.07%). Pearl Abyss (-2.97%), Alteogen (-1.23%), SK Materials (-0.80%), Seegene (-0.63%), and Celltrion Healthcare (-0.35%) declined.