[Asia Economy Reporter Junho Hwang] On the 9th, the KOSPI opened higher as research results showed that the severity risk of the COVID-19 variant Omicron is mild. On this day, which is the simultaneous expiration date of futures and options, foreign investors showed a net selling intention from the start of the market, but individual and institutional investors bought, maintaining the 3000 level.
KOSPI Maintains 3000 Level
On this day, the KOSPI opened at 3007.00, up 5.20 points (0.17%). Following the breakthrough of the 3000 level the previous day, it has maintained the 3000 level as of 9:28 a.m. Individual and institutional investors led the index rise by net buying 17.1 billion KRW and 21.9 billion KRW respectively. On the other hand, foreign investors net sold 44.2 billion KRW.
As of this time, among all stocks, 624 stocks rose while 198 stocks showed a decline. Among the market capitalization stocks, Samsung Electronics, the unchanging leader, recorded 77,300 KRW, down 0.13%. Meanwhile, SK Hynix, also a semiconductor stock, rose 0.83% to 121,000 KRW. LG Chem (0.40%), Hyundai Motor (0.48%), and Kia (1.08%) also showed upward trends.
By sector, the textile and apparel sector stood out with a 1.56% rise. Following were transportation and warehousing (1.53%), non-metallic minerals (1.12%), and transportation equipment (1.06%) sectors, all rising. Within the textile and apparel sector, Shinwon (6.48%), IndieF (3.42%), and F&F Holdings (3.29%) showed significant gains.
The stock market's rise today appears to be a result of eased investor sentiment following news that the severity risk of Omicron is low. The U.S. stock market responded with a slight rise the previous day after news that existing vaccines are effective against Omicron.
Pfizer and BioNTech announced initial research results on this day, stating that neutralizing antibodies in those fully vaccinated decrease 25-fold against Omicron. They further claimed that receiving an additional vaccine dose can restore protection against the Omicron variant to a level similar to that against the original virus. However, the companies noted that it is still too early to be certain but estimated that the probability of Omicron becoming the dominant strain in the U.S. by next spring is over 50%.
In South Korea, where the vaccination rate has surpassed 83.3%, such news is also leading to a rise in reopening-related stocks such as travel. At the same time, Modetour rose 4.95%, Hana Tour 4.84%, and Norangpungseon 4.18%.
Focus on the Impact of Futures and Options Expiration
The KOSDAQ also opened higher and is expanding its gains. The KOSDAQ opened at 1009.29, up 0.32% from the previous session, and is currently at 1011.64, up 0.56%. Individual and institutional investors are lifting the index by net buying 79.6 billion KRW and 4.5 billion KRW respectively. Conversely, foreign investors are showing a net selling intention of 81.4 billion KRW. Among the top market cap stocks, Pearl Abyss (2.28%) and Wemade (1.82%) are strong due to the NFT and metaverse boom.
However, since today is the simultaneous expiration date of futures and options, attention should be paid to foreign investors' futures trends. Also, it is expected that whether China's inflation indicators show stability compared to the previous month will affect the stock market.
Han Ji-young, a researcher at Kiwoom Securities, said, "It is appropriate to prepare for increased intraday index volatility due to changes in foreign and institutional investors' spot and futures supply and demand today," adding, "Rather than the overall index movement, a differentiated market based on individual sectors and themes is expected to unfold today."
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