Samsung Electronics and SK Hynix 'Soar'... KOSPI Closes Above 2990 Line

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the afternoon of the 7th, the KOSPI index, which increased its gains, closed above the 2990 level. The intraday shift to net buying by foreigners supported the rise, and especially the rebound of heavy market capitalization leaders Samsung Electronics and SK Hynix drove the index upward.

On this day, the KOSPI index closed at 2991.72, up 18.47 points (0.62%) from the previous day. It opened at 2973.84, up 0.59 points (0.02%) from the previous trading day. This was thanks to the major indices in the New York stock market closing higher overnight as concerns about the Omicron variant somewhat eased.

Net buying by foreigners was also positive. Foreigners net bought 211 billion KRW in the KOSPI market. Individuals and institutions were net sellers with 139.6 billion KRW and 79.8 billion KRW, respectively.

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "The easing of Omicron concerns and China's reserve requirement ratio cut positively affected investor sentiment. In particular, the continued inflow of foreign buying in the electrical and electronics sector also drove the index upward."

Among the top market capitalization stocks, SK Hynix closed up more than 2%. Samsung Electronics also rose more than 1%. It is interpreted that the stock prices rose as expectations for improved foreign investor demand in the semiconductor sector increased. Experts agreed that it is time to pay attention as semiconductor stocks are in a phase of bottoming out. Especially, they judged that it is better to approach before the stock price rebound fully begins amid the situation where DRAM prices are rising again. Lee Jae-sun, a researcher at Hana Financial Investment, said, "If the consensus forms that the possibility of further decline in DRAM prices is low and the semiconductor operating profit reduction will gradually decrease next year, additional bargain buying in the IT sector is considered valid. The stock price level of the IT sector is not burdensome."

The KOSDAQ index closed at 996.64, up 4.77 points (0.48%). The index opened at 996.89, up 5.02 points (0.51%) from the previous trading day. In the KOSDAQ market, individuals and institutions net bought 58.4 billion KRW and 36.4 billion KRW, respectively. Foreigners were net sellers with 87.1 billion KRW.

Among the top market capitalization stocks, HL Biopharma and Alteogen rose slightly. WeMade's stock price fell more than 3%, and Celltrion Healthcare, Pearl Abyss, and Kakao Games declined slightly.