'Investor Sentiment Recovers' as Omicron Concerns Ease... KOSPI and KOSDAQ Start Higher

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 23rd, the KOSPI and KOSDAQ indices started higher. This is interpreted as receiving positive momentum as the US stock market closed higher amid easing concerns over Omicron.

On the day, the KOSPI opened at 2,998.02, up 13.54 points (0.45%), and the KOSDAQ opened at 1,004.45, up 4.32 points (0.43%). As of 9:18 AM, the KOSPI's gain had somewhat softened to 2,987.88. The KOSDAQ maintained its gains, trading at 1,005.13.

In the early session, only institutions showed net buying. Individuals and foreigners were net sellers. Individuals were net selling about 7.6 billion KRW and 30.5 billion KRW in the KOSPI and KOSDAQ markets, respectively. Foreigners were net sellers by about 7.4 billion KRW and 100 million KRW, respectively. Only institutions were net buyers, purchasing about 13.6 billion KRW and 35.2 billion KRW in the two markets, respectively.

By sector in the KOSPI, Electric and Gas Utilities (1.04%), Chemicals (0.88%), and Textiles and Apparel (0.74%) were rising. Medical Precision (-1.10%) and Pharmaceuticals (-0.86%) were declining.

The three major US stock indices in New York all closed higher. On the 22nd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 261.19 points (0.74%) to close at 35,753.89. The large-cap focused Standard & Poor's (S&P) 500 index rose 47.33 points (1.02%) to 4,696.56, and the tech-heavy Nasdaq index closed up 180.81 points (1.18%) at 15,521.89.

Seosangyoung, a researcher at Mirae Asset Securities, said, "The US stock market's rise, supported by easing Omicron concerns and Tesla, is expected to have a positive impact on investor sentiment in the Korean stock market." He added, "Although some of this was reflected the previous day, the strong performance of electric vehicle-related sectors could positively affect the secondary battery sector, which had been weak. Also, considering the continued rise in international oil prices, related sectors are expected to benefit favorably."