KOSPI Pauses Ahead of Earnings Announcements... Dips Below 3000 Early in the Session

KOSDAQ Starts Lower... Turns Up During Session

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] Ahead of the full-scale earnings announcements by companies, the domestic stock market has entered a pause. Meanwhile, the KOSPI showed mixed trends, falling below the 3000 mark again after four trading days.

As of 10:52 a.m. on the 22nd, the KOSPI recorded 3009.40, up 0.07% (2.07 points) from the previous day. It has been fluctuating slightly around the 3000 level, dropping to 2996.26 at 9:10 a.m. that day.

The domestic stock market appears to be in a wait-and-see mode ahead of corporate earnings announcements. Seosangyoung, a researcher at Mirae Asset Securities, explained, "Next week, major U.S. tech stocks and Korean companies will announce their earnings," adding, "Investors should pay attention to intraday volatility of individual stocks in the domestic market."

There are also U.S.-originated issues that could affect the domestic stock market. Next week, the U.S. Congress will vote on the Biden administration's infrastructure investment bill. Additionally, on November 3, the Federal Open Market Committee (FOMC) is expected to announce its decision on tapering asset purchases. If tapering begins in earnest, market volatility could increase, causing concern among investors.

Individuals and institutions are buying, but foreigners are selling. Individuals and institutions net purchased 7.4 billion KRW and 84.1 billion KRW respectively, while foreigners net sold 86.6 billion KRW.

Indices by sector showed mixed results. The paper and wood sector had the largest gain at 4.72%, followed by telecommunications (2.98%), banking (0.45%), pharmaceuticals (0.27%), and chemicals (0.24%). Meanwhile, electricity and gas (-1.62%), steel and metals (-1.52%), non-metallic minerals (-0.76%), transportation and warehousing (-0.70%), and transportation equipment (-0.38%) declined.

Most of the top 10 market capitalization stocks rose. LG Chem had the largest increase at 2.11%, followed by Samsung SDI (1.38%), SK Hynix (1.35%), Samsung Biologics (0.69%), Samsung Electronics (0.28%), Hyundai Motor (0.24%), and Kia (0.24%). NAVER (-1.46%) and Kakao (-0.78%) declined. Celltrion remained flat.

The KOSDAQ recorded 996.46, up 0.28% (2.76 points) from the previous day. Although it started lower, it turned upward around 10:05 a.m.

Buying pressure from individuals and foreigners is relatively strong. Individuals and foreigners net purchased 27.5 billion KRW and 7.1 billion KRW respectively, while institutions net sold 24 billion KRW.

Many sectors showed strength. The transportation sector led with a 1.43% gain, followed by digital content (1.37%), IT software & services (1.22%), software (1.13%), and publishing & media replication (1.00%). Meanwhile, transportation equipment & parts (-0.98%), information devices (-0.94%), finance (-0.72%), medical & precision instruments (-0.56%), and machinery & equipment (-0.39%) declined.

Many of the top 10 market capitalization stocks showed gains. Kakao Games led with a 6.35% increase, followed by EcoPro BM (1.58%), L&F (0.96%), CJ ENM (0.88%), Celltrion Pharm (0.41%), and Celltrion Healthcare (0.11%). HLB (-2.08%), Wemade (-1.34%), and SK Materials (-0.51%) declined. Pearl Abyss remained flat.