KOSPI Starts Lower
KOSDAQ Starts Higher Then Reverses to Decline
Metaverse and Other Gaming Stocks Perform Well
[Asia Economy Reporter Junho Hwang] On the 18th, due to the College Scholastic Ability Test, the market opened an hour later than usual at 10 a.m., starting off mixed. The previous day, the U.S. stock market closed lower amid inflation concerns, and this has been analyzed as a factor that dampened investor sentiment in the domestic market as well. However, game stocks on the KOSDAQ market are showing some optimism.
The KOSPI opened at 2,959.26, down 3.16 points, or 0.11%, from the previous session. As of 10:05 a.m., the KOSPI further declined by 0.51% to 2,947.55. Individual investors are trying to push the index up with net purchases of 80.6 billion KRW, but foreign and institutional investors are pulling the index down with net sales of 40.1 billion KRW and 38.6 billion KRW, respectively.
Among all listed stocks, only 180 are showing gains, while the remaining 727 are either flat or declining. Most of the large-cap stocks are also showing red. SK Hynix (-0.45%), Samsung Biologics (-0.82%), LG Chem (-0.91%), Samsung SDI (-0.79%), and Hyundai Motor (-0.48%) are all down.
Seunghyun Jun, President and Head of Samsung Research, delivering the welcome address at the Samsung Software Developer Conference.
On the other hand, Samsung Electronics, the unwavering market leader, is trading up 0.28% at 70,900 KRW. Positive investor sentiment appears to be driven by news that Samsung Electronics maintained semiconductor-focused investments despite COVID-19, ranking first domestically in both investment amount and scale.
According to CEO Score, a corporate evaluation site, among the top 500 domestic companies, 336 companies that submitted their Q3 reports this year were surveyed on their annual investment performance from 2019 to 2021. Samsung Electronics' cumulative investment amount for Q3 this year was 36.9635 trillion KRW, an increase of 8.0932 trillion KRW (28%) from 28.8704 trillion KRW in Q3 last year. Both total investment and year-over-year growth were the highest among domestic companies.
NAVER is also trading up 1.25% at 406,000 KRW. NAVER announced that Choi Soo-yeon, aged 40, has been appointed as the next CEO.
By sector, textile and apparel (0.10%) and electrical and electronics (0.08%) are showing gains. Conversely, transportation and warehousing (-1.90%), medical precision (-1.70%), and food and beverage (-0.87%) sectors have seen increased declines since the market opened.
The KOSDAQ opened at 1,033.16, up 1.90 points (0.18%). However, it soon declined and is currently down 0.28% at 1,028.39. Among all stocks, 410 are rising, while the remaining 1,035 are either flat or falling.
Among the large-cap stocks, game stocks continued their strong performance today. Pearl Abyss is up 0.43% at 131,600 KRW. Kakao Games rose 0.93% to 108,900 KRW, and Wemade jumped 5.42% to 217,600 KRW. Additionally, CJ ENM is up 0.42% at 168,400 KRW.
By sector, the KOSDAQ shows a wider variety of rising sectors compared to the KOSPI. IT components (1.42%), broadcasting services (1.42%), textiles and apparel (1.34%), and entertainment (0.64%) sectors posted significant gains. Among IT components, Kois surged 25.92%, and YJM rose 13.20%.
Experts expect the market today to show a similar pattern as the previous day, with overall index weakness alongside strong performances in select stocks.
Sangyoung Seo, a researcher at Mirae Asset Securities, analyzed, "Concerns over strong inflation in the U.S., combined with domestic COVID-19 cases surpassing 3,000, raised worries about sluggish domestic demand. The recent sell-off in electric vehicle companies that had shown strength, and increased volatility in international crude oil and raw materials prices are expected to contribute to the market's weakness."
Ji-young Han, a researcher at Kiwoom Securities, pointed out, "The recent dollar index surpassed the 95 mark, reaching its highest level in about 16 months. This strong dollar trend is becoming a burden on major stock markets."
She added, "The domestic market, except for themes like NFT and metaverse, is not showing clear direction, making it difficult for market participants to respond. This is intensifying the concentration on specific stock groups mentioned above. Since profit-taking selling pressure may emerge after rapid short-term gains, it is appropriate to be cautious about increased price volatility."
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