KOSDAQ Falters... Profit-Taking Selling Emerges in Secondary Battery and Gaming Stocks
On the morning of the 22nd, the KOSPI index is displayed in the Hana Bank dealing room in Jung-gu, Seoul. [Image source=Yonhap News]
[Asia Economy Reporter Minwoo Lee] The KOSPI is maintaining the 2990 level as the stock prices of top semiconductor companies by market capitalization, such as Samsung Electronics and SK Hynix, show strength. On the other hand, the KOSDAQ, which had been on an upward trend, is showing some weakness as profit-taking selling emerges in stocks related to the metaverse (expanded virtual world), gaming, and secondary battery materials.
As of 10:18 AM on the 22nd, the KOSPI stood at 2992.22, up 0.71% from the previous trading day. It started with a slight gain at 2983.38 and then widened its gains slightly.
The overall index was driven up by the sharp rise in large semiconductor stocks such as Samsung Electronics and SK Hynix. At the same time, these stocks surged by 4.78% and 6.74%, respectively. Last week, the U.S. stock market saw Micron Technology, a semiconductor company closely linked to SK Hynix’s profits, jump over 7%, which appears to have had a positive effect. Micron Technology presented a positive outlook, citing eased pressure on memory prices in the first half of next year and increased server demand. Hyundai Motor and Kia also rose by 1.43% and 0.60%, respectively. Expectations for improvements in the semiconductor and automobile industries have brought warmth to large-cap stocks.
Han Ji-young, a researcher at Kiwoom Securities, explained, "As seen from Micron Technology’s sharp rise, concerns about industry slowdown reflected in semiconductor stock prices are entering their final stage through the first half of next year. Considering the expanding signals of normalization in automotive semiconductor production in emerging countries such as Malaysia, overall demand for large domestic stocks is expected to turn positive going forward."
At the same time, the KOSDAQ fell 1.30% from the previous trading day to 1028.39. It started slightly higher at 1043.55 but then reversed to a decline. This appears to be due to profit-taking selling following the previous rise in sectors related to secondary battery materials and gaming, which hold top market capitalizations.
LN F and Kakao Games, ranked 4th and 6th in market capitalization, fell by 8.74% and 8.39%, respectively. Pearl Abyss (-4.67%), EcoPro BM (-4.30%), and Wemade (-3.59%) also dropped consecutively.
Meanwhile, by investor type, foreigners and institutions were net buyers of 335.5 billion KRW and 218.7 billion KRW, respectively, in the KOSPI. Individuals sold 539.2 billion KRW. In the KOSDAQ market, individuals and institutions bought 116.5 billion KRW and 3.1 billion KRW, respectively, while foreigners were net sellers of 116.3 billion KRW.
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