'Semiconductor Stocks' Rise, KOSPI Up 1.5%... Foreigners Net Buy 886 Billion KRW

Nearly 1 Trillion KRW Net Selling by Individuals
Omicron Uncertainty Remains

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] The KOSPI and KOSDAQ indices closed higher, supported by gains in the semiconductor sector despite concerns over the spread of the Omicron variant.

On the 2nd, the KOSPI ended the day at 2,945.27, up 1.57% (45.55 points) from the previous trading day. The index opened at 2,874.64, down 0.86% (25.08 points) from the previous day, and experienced a rollercoaster session with fluctuations between gains and losses, but in the afternoon, it rose more than 1%, firmly setting its direction. The driving force behind the index's rise was foreign investors, who purchased stocks worth 886 billion KRW alone. Individual and institutional investors sold stocks worth 913.5 billion KRW and 4.2 billion KRW, respectively.

The market maintained a steady trend as stocks related to the electrical and electronics sector, which have a significant weight in the domestic market, showed an upward trend. Sangyoung Seo, a researcher at Mirae Asset Securities, explained, "Although news of Omicron cases is a source of concern, the market showed an upward bias amid foreign buying and a steady trend in leading semiconductor stocks," adding, "Foreign demand was concentrated due to expectations for the passage of a semiconductor production support bill in the U.S. Congress."

Looking at the top market capitalization stocks, Samsung Electronics and SK Hynix rose 1.88% and 3%, respectively, confirming improved sentiment among foreign investors regarding the semiconductor industry. NAVER (2.18%), LG Chem (1.25%), Hyundai Motor (2.24%), and Kia (0.49%) also rose.

The KOSDAQ index closed at 977.43, up 0.03% (0.29 points) from the previous trading day. The index opened at 967.34, down 1% (9.81 points) from the previous day, and widened its losses, but managed to close higher as foreign investors turned to net buying. The driving forces behind the index's rise were foreign and individual investors, who purchased stocks worth 59.4 billion KRW and 35.5 billion KRW, respectively. Institutions alone sold stocks worth 34.9 billion KRW.

Among the top market capitalization stocks, Celltrion Healthcare (0.87%) and HL Biopharma (0.96%) rose, while EcoPro BM (-3.71%), Pearl Abyss (-9.32%), L&F (-3.38%), Kakao Games (-5.38%), Wemade (-8.76%), and Celltrion Pharm (-0.08%) declined.

Meanwhile, the securities industry expects that, due to the lack of data on Omicron, market reactions will continue to fluctuate depending on evaluations from major countries' health agencies. Kyungmin Lee, a researcher at Daishin Securities, said, "The Australian Department of Health currently states there is no indication that Omicron is more fatal than previous variants, emphasizing that all cases analyzed worldwide were mild or essentially asymptomatic," adding, "Additionally, Dr. Fauci, director of the U.S. NIAID, assessed that booster shots will be effective in preventing severe illness from Omicron, which is also helping to ease fears related to Omicron once again."