KOSPI Maintains Rise... Rebound Buying, Samsung Electronics Earnings, and Political Themes

On the 6th, KOSPI opened at 2,927.50, down 26.47 points (0.90%) from the previous trading day. Dealers are working in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. On the same day, the won-dollar exchange rate started trading at 1,200.9 won, up 4.0 won from the previous trading day. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Junho Hwang] On the 7th, the stock market continues its upward trend due to rebound buying against the weakness caused by the US tightening stance, Samsung Electronics' earnings announcement, and the CES 2022 effect.

As of 2:04 PM, the KOSPI is at 2,955.49, up 1.20% from the previous session. Although individual investors, who were net buyers early in the session, turned to net selling as foreign investors' net buying strengthened, foreign investors currently show a net buying intention of 404.7 billion KRW, supporting the index's rise. Institutions are net sellers with 187.1 billion KRW.

Samsung Electronics Announces Record-Breaking Earnings

On the 6th, KOSPI opened at 2,927.50, down 26.47 points (0.90%) from the previous trading day. Dealers are working in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. On the same day, the won-dollar exchange rate started trading at 1,200.9 won, up 4.0 won from the previous trading day. Photo by Jinhyung Kang aymsdream@

Among all stocks, 659 rose while 219 fell. Among the top market capitalization stocks, the leading stocks' upward momentum stands out. Samsung Electronics is trading at 78,400 KRW, up 1.95% from the previous session, driven by foreign investors' net buying. Samsung Electronics announced its Q4 earnings for last year. On a consolidated basis for Q4 (September to December) last year, Samsung Electronics reported sales of 76 trillion KRW and operating profit of 13.8 trillion KRW. Sales increased by 2.73% compared to 61.55 trillion KRW in the same period last year. Operating profit also rose by 52.49% compared to 9.05 trillion KRW in Q4 last year. However, operating profit fell short of the securities market consensus of 15.7 trillion KRW.

SK Hynix, also considered a representative semiconductor stock along with Samsung Electronics, is recording gains. It is trading at 128,000 KRW, up 2.40% from the previous session. Other stocks such as Samsung Biologics (0.60%), LG Chem (4.35%), Hyundai Motor (0.47%), and Kakao (0.50%) are also on the rise.

Lee Kyung-min, a researcher at Daishin Securities, said, "Although Samsung Electronics' operating profit fell short of the consensus, sales exceeded it. Annual sales hit a record high, expanding expectations for the semiconductor industry, which has led to continued inflows from foreign investors."

Hyosung TNC and Others Rise

On the 6th, KOSPI opened at 2,927.50, down 26.47 points (0.90%) from the previous trading day. Dealers are working in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. On the same day, the won-dollar exchange rate started trading at 1,200.9 won, up 4.0 won from the previous trading day. Photo by Jinhyung Kang aymsdream@

By sector, the chemical industry is leading with a 2.47% increase, showing the highest sectoral rise. This is followed by food and beverage at 1.92%, electrical and electronics at 1.67%, and textiles and apparel at 1.35%, all recording upward trends.

Within the chemical sector, Hyosung TNC is trading at 586,000 KRW, up 9.74% from the previous session, driven by increased dividend expectations due to the fourth-generation ownership stake purchase by the Hyosung Group owner and optimism from expanding spandex demand. Deokseong, considered a theme stock following the dramatic reconciliation between Yoon Seok-yeol, the People Power Party's presidential candidate, and Lee Jun-seok, the party leader, is also up 8.98% at 17,600 KRW.

Reversal of Declining Stocks

On the 6th, KOSPI opened at 2,927.50, down 26.47 points (0.90%) from the previous trading day, as dealers were working in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. On the same day, the won-dollar exchange rate started trading at 1,200.9 won, up 4.0 won from the previous trading day. Photo by Kang Jin-hyung aymsdream@

The KOSDAQ is also recording gains, with attention focused on whether it will surpass the 1,000-point mark. As of now, the KOSDAQ is at 994.34, up 1.43% from the previous session. Individual and foreign investors are net buyers with 18.9 billion KRW and 37.9 billion KRW respectively, driving the index's rise. Institutions are net sellers with 58.4 billion KRW. Among the top market cap stocks, those that had been declining are showing upward momentum. WeMade is up 8.47% at 149,900 KRW, and Pearl Abyss is up 2.57%.

The won/dollar exchange rate rose to 1,204 KRW during the session but the rise narrowed due to easing dollar strength pressure and foreign investors' net buying in the stock market. It is currently fluctuating around 1,202 KRW.