KOSPI Starts Lower
Intraday Reversal to Rise
Continues on Foreign and Institutional Net Buying
[Asia Economy Reporter Hwang Junho] On the 27th, the KOSPI started lower but reversed to rise during the session.
On this day, the KOSPI opened at 3,120.76, down 4.48 points (0.14%). As of 9:37 a.m., the KOSPI was up 0.15% at 3,129.98. Foreign investors and institutions were net buyers of 45.5 billion KRW and 10.8 billion KRW respectively, while individuals were net sellers amounting to 48.9 billion KRW. Among all listed stocks, 431 stocks declined, while 400 stocks showed gains.
Among the top market capitalization stocks, Samsung Electronics and SK Hynix showed upward trends. Samsung Electronics was up 0.13% at 77,400 KRW, and SK Hynix rose 0.48% to 104,500 KRW. Additionally, Kakao traded up 1.26% at 121,000 KRW, and Samsung Biologics recorded 929,000 KRW (0.76%).
By sector, the non-metallic minerals industry showed a 3.25% rise. Posco Chemical led the sector's gains, trading up 5.86% at 171,500 KRW following news of aggressive investment in anode materials after cathode materials. Other stocks in the same sector such as Sungshin Cement Preferred (4.25%), Hanil Hyundai Cement (3.42%), and Korea Petroleum (3.19%) also recorded gains. Besides the non-metallic minerals sector, telecommunications (1.80%), transportation and warehousing (1.39%), and electric and gas utilities (1.06%) also showed slight increases.
Unlike the KOSPI, the KOSDAQ continues to decline. At the same time, it recorded 1,032.97, down 4.06 points (0.39%). Although individuals were net buyers with 97.6 billion KRW, foreign investors and institutions were net sellers of 50.8 billion KRW and 43.8 billion KRW respectively, limiting upward momentum. Among all stocks, 814 declined while 514 rose.
Most of the top market capitalization stocks showed weakness. Only Kakao Games rose 0.29% to 68,500 KRW. By sector, the paper and wood industry rose 2.41%, led by Eagon Holdings, the remaining holding company after the spin-off of the window business division into Eagon Window, which surged 9.57%. Construction rose 1.61%, entertainment 1.48%, and information devices 1.47% followed in gains.
Seo Sang-young, a researcher at Mirae Asset Securities, analyzed, "The bankruptcy issue of China's Evergrande Group is ongoing, and hawkish remarks from U.S. Federal Reserve officials could negatively affect foreign investor flows, making a market decline inevitable." However, he added, "The release of Huawei's vice chairman and easing of U.S.-China tensions, along with rising international oil prices, are expected to positively impact the market, leading to a rebound buying trend after the market opens."
Han Ji-young, a strategic market researcher at Kiwoom Securities, said, "This week, the Korean stock market is expected to show a moderate upward trend influenced by major domestic and international economic indicators such as the U.S. ISM manufacturing index, Korea's exports, U.S. congressional debt ceiling negotiations, and the spread of the Evergrande crisis in China," setting the weekly KOSPI forecast range at 3,090 to 3,190.
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