'Up and Down' KOSPI... Recovers 2910 Level with Over 0.6% Rise

Foreigners' Net Buying Boosts Semiconductor Stocks... SK Hynix Up 3%

On the 2nd, the KOSPI and KOSDAQ indices started lower influenced by the decline in the US stock market. Dealers are working in the Hana Bank dealing room in Euljiro, Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Minji Lee] The KOSPI, which started off declining, is showing an upward trend. Foreign investors have driven the KOSPI's rebound by heavily buying large semiconductor stocks. Meanwhile, the KOSDAQ index continues to fall by nearly 1%.

As of 10:38 a.m. on the 2nd, the KOSPI is at 2911.59, up 0.41% (11.87 points) compared to the previous trading day. The KOSPI opened the day at 2874.64, down 0.86% (25.08 points) from the previous day, and has since experienced a rollercoaster session with alternating rises and falls.

Currently, the upward momentum is expanding as foreign investors increase their net buying. Looking at investment trends, foreigners alone are increasing their net purchases. Foreigners bought stocks worth 204.2 billion KRW, while individuals and institutions sold stocks worth 82.3 billion KRW and 130.5 billion KRW, respectively.

Foreign investors are heavily buying large semiconductor stocks. Among the top KOSPI market capitalization stocks, Samsung Electronics and SK Hynix rose 0.67% and 3.08%, respectively, compared to the previous day. Foreigners have currently net purchased approximately 1.49 million shares of Samsung Electronics and 460,000 shares of SK Hynix. Following news that Micron would collaborate with Taiwan's UMC to eliminate supply chain uncertainties, Micron rose 1.37% the previous day. This improvement in the supply chain has expanded the view that semiconductor-related companies' earnings could improve, boosting investor sentiment.

By sector, the gains were recorded in the following order: Paper & Wood (1.95%), Insurance (1.02%), Construction (1.1%), Distribution (0.86%), Transportation & Warehousing (0.85%), Machinery (0.90%), and Electrical & Electronics (0.71%). Among paper & wood companies, Daeyoung Packaging (8.2%), Taelim Packaging (4.2%), and Paper Korea (3.8%) showed significant increases, which is interpreted as influenced by expectations of increased non-face-to-face consumption due to the spread of the Omicron variant. Among other top market cap stocks, NAVER (0.26%), Krafton (0.61%), and KB Financial (0.19%) rose, while Kakao (-1.63%), LG Chem (-0.56%), Samsung SDI (-1.15%), and Kia (-0.49%) declined.

The KOSDAQ index was at 975.02, down 0.22% (2.13 points) at the same time. The KOSDAQ opened at 967.34, down 1% (9.81 points) from the previous day, but has been narrowing its losses during the morning session. In the KOSDAQ market, individuals alone bought stocks worth 94.4 billion KRW, while foreigners and institutions sold stocks worth 58.4 billion KRW and 31.4 billion KRW, respectively.

By sector, semiconductor (3.02%), information devices (2.77%), computer services (1.78%), and medical & precision instruments (1.61%) showed upward trends. Among semiconductor-related stocks, Jusung Engineering (8.9%), FST (7.4%), and Nepes (7.5%) had significant gains. Among the top market cap stocks, Celltrion Healthcare (-1.94%), EcoPro BM (-4.69%), Pearl Abyss (-8.54%), L&F (-5.03%), Kakao Games (-5.38%), Wemade (-9.52%), and Celltrion Pharm (-2.38%) declined, while Seegene alone rose 0.86%.