KOSDAQ Also Rebounds Early in the Session
LNDF Shows an 18% Increase
[Asia Economy Reporter Gong Byung-sun] Individual buying momentum led to an early rise in the index. The alleviation of bankruptcy concerns surrounding Chinese real estate company Evergrande Group appears to have contributed to the rebound. However, the upward trend is somewhat stalled due to institutional selling pressure.
As of 10:55 a.m. on the 24th, the KOSPI recorded 3,132.68, up 0.16% (5.10 points) from the previous day. It rose to 3,146.86 at 9:27 a.m. but has gradually given back some of the gains.
The rebound in the U.S. stock market, which shook off Evergrande Group's bankruptcy concerns, is interpreted as having a positive impact on the domestic market. On the 23rd (local time), all major New York stock indexes closed higher. The Dow Jones Industrial Average, S&P 500, and Nasdaq rose 1.48%, 1.21%, and 1.04%, respectively. Seo Sang-young, a researcher at Mirae Asset Securities, explained, "It is estimated that a rebound buying momentum is flowing in following this week's decline," adding, "In fact, individual investors bought stocks worth more than $3 billion (approximately 3.5241 trillion KRW) on both the 20th and 21st, when the market fell about 3% intraday."
Risk asset preference sentiment is also showing signs of recovery. While the U.S. dollar weakened, commodity futures markets such as crude oil showed favorable performance. The dollar exchange rate surged to a yearly high of 1,186.4 KRW amid Evergrande risk concerns the previous day but fell back to the 1,170 KRW range. As of 10:44 a.m., the dollar exchange rate stood at 1,174.70 KRW, up 0.06% (0.70 KRW) from the previous day. Meanwhile, international crude oil prices hit a two-month high due to supply reduction issues caused by Hurricane Ida in the U.S. As of the 23rd, West Texas Intermediate (WTI) crude oil futures rose for the fourth consecutive trading day, reaching $73.64.
Meanwhile, buying momentum from individuals and foreigners led to the index rise. Individuals and foreigners net bought 156.6 billion KRW and 9.8 billion KRW, respectively. Institutions net sold 173.8 billion KRW.
Most sectors rose. Banks showed the largest gain at 2.82%, followed by textiles and apparel (2.72%), non-metallic minerals (1.19%), finance (1.10%), and services (0.89%). On the downside were electric and gas utilities (-2.10%), medical precision (-1.19%), machinery (-0.98%), distribution (-0.60%), and transportation equipment (-0.59%).
Many of the top 10 market capitalization stocks showed weakness. Celltrion had the largest drop at 2.46%, followed by Kia (-1.19%), Samsung SDI (-0.82%), LG Chem (-0.53%), Hyundai Motor (-0.24%), and Samsung Electronics (-0.13%). Kakao (4.35%) and NAVER (1.38%) rose. SK Hynix and Samsung Biologics remained flat.
At the same time, the KOSDAQ index rose 0.47% (4.92 points) to 1,041.18. It climbed to 1,045.21 at 9:27 a.m. but has since somewhat stalled.
Individual buying momentum is strong. Individuals net bought 153.5 billion KRW. Foreigners and institutions net sold 108.5 billion KRW and 44.3 billion KRW, respectively.
Almost all sectors rose. IT components showed the largest gain at 5.05%, followed by IT hardware (1.76%), medical and precision instruments (1.48%), software (1.32%), and textiles and apparel (1.12%). Decliners included distribution (-1.25%), broadcasting services (-0.92%), digital content (-0.55%), telecommunications and broadcasting services (-0.50%), and other manufacturing (-0.35%).
The top 10 market capitalization stocks showed mixed results. L&F had the largest gain at 18.29%, followed by Seegene (2.31%), Alteogen (0.25%), and EcoPro BM (0.06%). Celltrion Pharm (-4.09%), Celltrion Healthcare (-3.26%), HL Bionics (-2.39%), SK Materials (-0.55%), and Kakao Games (-0.15%) declined. Pearl Abyss remained flat.
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