Reflecting Expectations for Chinese Government Stimulus
Celltrion Trio Closes Up Over 3%
[Asia Economy Reporter Minji Lee] The KOSPI closed higher due to net buying by foreign investors. On the day, the KOSPI even surpassed the 3160 level during the session, fueled by growing expectations for the Chinese government's stimulus policies.
On the 15th, the KOSPI closed at 3153.40, up 0.15% (4.75 points) from the previous trading day. The index opened at 3147.21, down 0.05% (1.62 points) from the previous day, and showed an upward trend. However, after the release of Chinese real economy indicators that fell short of market expectations, it dropped to 3138.80 during the session. Subsequently, as market sentiment shifted from the weak indicators to increased expectations for the Chinese government's stimulus measures, the domestic stock market climbed back above the 3160 level. Foreign investors purchased stocks worth 294.4 billion KRW in the KOSPI market that day, while individuals and institutions sold stocks worth 176.4 billion KRW and 142.4 billion KRW, respectively.
By sector, notable gains were seen in Medical Precision (5.12%), Pharmaceuticals (2.12%), Non-metallic Minerals (2.06%), Electric and Gas Utilities (1.45%), and Construction (0.56%). Celltrion showed strength for the first time in a while, which is interpreted as a positive reaction to the news of the merger between Celltrion Healthcare Holdings and Celltrion Skincure. Additionally, the U.S. government's announcement of plans to strengthen support for biosimilars also contributed to the stock price increase. Samsung Biologics, part of the same biosimilar theme, closed up 2.5%.
In the construction sector, Samsung Engineering (11.1%) and Hyundai Construction (1.3%) rose, likely benefiting from expectations of Aramco's resumption and increased overseas plant orders. Among the top market capitalization stocks, Samsung Electronics closed at 77,000 KRW, up 0.52% from the previous day. Hyundai Motor (0.24%) and Celltrion (3.61%) also ended higher. Conversely, NAVER (-0.5%), Kakao (-1.21%), Samsung SDI (-0.66%), and LG Chem (-2.18%) declined.
The KOSDAQ index also closed higher at 1042.79, up 0.49% (5.05 points) from the previous day. It opened at 1039.57, up 0.18% (1.83 points), and maintained its upward momentum. Foreign investors were net buyers of stocks worth 41.3 billion KRW in the KOSDAQ market, while individuals and institutions sold stocks worth 5.6 billion KRW and 23.6 billion KRW, respectively.
By sector, the highest gains were seen in Information Devices (1.51%), Distribution (1.46%), Entertainment & Culture (1.25%), and Pharmaceuticals (1.16%). Among the top market capitalization stocks, most showed gains, including Celltrion Healthcare (3.07%), EcoPro BM (1.85%), HL Biopharma (3.11%), Celltrion Pharm (3.77%), Pearl Abyss (1.69%), and L&F (2.97%).
Researcher Kyungmin Lee of Daishin Securities explained, “Although China's domestic demand was significantly weak due to the spread of the COVID-19 Delta variant and lockdown measures, expectations for government stimulus measures increased, leading to a rise in the Chinese stock market. The upward trend was supported by easing pressure on the yuan's strength, a reversal in the won-dollar exchange rate decline, and improved foreign investor demand.”
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