KOSPI Sideways Movement in a Sector-Driven Market

KOSPI Sideways Around 3030... KOSDAQ Also Shows Little Change
Games and Entertainment Falter, Semiconductors Rebound

[Asia Economy Reporter Minwoo Lee] The KOSPI continues to hover around the 3030 level without significant fluctuations. While the media, entertainment, and gaming sectors, which had shown strong performance, are seeing profit-taking selling, the semiconductor and IT sectors, which had experienced prolonged weakness, are rebounding, resulting in a stock-specific market trend.

As of 11:10 AM on the 28th, the KOSPI recorded 3031.03, up 0.18% from the previous day. After opening slightly lower at 3023.17, it has shown little volatility.

There are no distinct characteristics in the supply and demand by investor type. In the KOSPI market, foreigners and institutions sold a net 48.2 billion KRW and 5.3 billion KRW respectively, while individuals bought a net 50.9 billion KRW.

By sector, banks (3.54%), precision medical instruments (1.08%), and electrical and electronics (0.98%) rose, while insurance (-1.93%), steel and metals (-1.44%), and distribution (-0.83%) declined.

At the same time, the KOSDAQ also rose 0.08% to 1009.61 compared to the previous day. After opening slightly lower at 1008.93, it has been moving sideways.

Similarly, foreigners and institutions sold net amounts of 68.2 billion KRW and 28.4 billion KRW respectively, while individuals purchased 111.2 billion KRW.

The ratio of rising to falling sectors was also similar. Semiconductors (2.85%), non-metallic minerals (2.38%), and IT hardware (1.72%) increased, while entertainment and culture (-2.23%), paper and wood (-2.20%), and digital content (-1.90%) declined.

As the earnings announcement period comes to an end, the index movement is somewhat subdued, indicating a stock-specific market. Park Kwangnam, head of the Digital Research Team at Mirae Asset Securities, explained, "While profit-taking selling is occurring in the media, entertainment, and gaming sectors that had been on a strong upward trend, the semiconductor sector is showing differentiated performance among stocks and sectors. Recently, through earnings announcements and conference calls by Samsung Electronics and SK Hynix, concerns have been alleviated as the possibility of a conservative adjustment in DRAM supply has emerged."