Both Markets Stall... KOSPI at 2840, KOSDAQ Sideways at 940

Technical Rebound After Recent Decline... Focus on Next Week's Earnings Reports of Major US Tech Stocks

On the morning of the 20th, employees are working in the dealing room of Hana Bank in Jung-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The market, which had slightly recovered in the early session, is showing signs of hesitation again. The KOSPI is hovering around the 2840 level, while the KOSDAQ is also consolidating around the 940 level.

As of 10:45 a.m. on the 20th, the KOSPI recorded 2843.95, up 0.06% from the previous day. It opened at 2842.28, the same as the previous day, and has shown little fluctuation since. It briefly rose to the 2950 level in the morning but has since remained around 2840.

By investor type, individuals and institutions net bought 63.1 billion KRW and 130.3 billion KRW respectively, while foreigners net sold 192.3 billion KRW.

At the same time, the KOSDAQ recorded 941.37, up 0.80% from the previous day. Around 9:29 a.m., it rose to 946.93, up 1.40% from the previous day, but the gains soon narrowed.

Many sectors showed gains. The medical precision sector had the largest increase at 2.18%, followed by chemicals (1.40%), steel & metals (1.13%), construction (0.82%), and electricity & gas (0.61%). Banks (-2.03%), insurance (-1.36%), and finance (-0.65%) declined.

In the KOSDAQ market, foreigners and institutions net bought 2.2 billion KRW and 51.8 billion KRW respectively, while individuals net sold 45.9 billion KRW.

Almost all sectors are on the rise. Digital content (2.18%), entertainment & culture (2.05%), paper & wood (1.47%), and computer services (1.38%) showed significant gains. Distribution (-1.01%) and metals (-0.42%) declined.

This is analyzed as a technical rebound following the recent downtrend. Kwangnam Park, head of the Digital Research Team at Mirae Asset Securities, explained, "The interest rates, which had been causing market anxiety, have somewhat stabilized," adding, "Starting with Netflix today, attention seems to be shifting to next week's Federal Open Market Committee (FOMC) meeting and major tech companies' earnings announcements."