Overreaction to Excessive Decline... KOSPI and KOSDAQ Start Higher

Early Session: Individual and Institutional Investors Net Buying in Sequence

[Asia Economy Reporter Minji Lee] The KOSPI and KOSDAQ indices started higher. It is analyzed that a slight upward trend was seen as bottom-fishing demand flowed in after stock prices fell excessively due to panic selling.

At 9:09 a.m. on the 28th, the KOSPI was at 2,626.21, up 0.45% (11.72 points) from the previous trading day. The KOSPI opened the session at 2,617.87, up 0.13% (3.38 points) from the previous day. Looking at investor trends, individuals and institutions bought stocks worth 98 billion KRW and 98.4 billion KRW respectively, while foreigners alone sold stocks worth 199.7 billion KRW.

Among the top market capitalization stocks, Samsung Electronics rose 0.84% to 71,900 KRW. Following were SK Hynix (2.20%), Samsung Biologics (0.14%), LG Chem (3.28%), Hyundai Motor (0.27%), and Kakao (0.73%), all of which increased. LG Energy Solution, which rose to second place in market capitalization after its listing the previous day, declined for the second consecutive trading day. The company traded down 5.74% at 476,000 KRW. Additionally, NAVER (-1.82%) and Samsung SDI (-1.85%) also fell.

Han Ji-young, a researcher at Kiwoom Securities, explained, “The recent consecutive panic selling has caused stock prices to plunge beyond fundamentals, so the domestic stock market is expected to see a technical rebound due to the perception of excessive decline and bottom-fishing demand, limiting downward pressure. The fact that Apple recorded an earnings surprise despite supply shortages will have a positive impact on the overall index.”

At the same time, the KOSDAQ index was at 852.19, up 0.35% (2.96 points) from the previous trading day. The KOSDAQ opened at 852.57, up 0.39% (3.34 points) from the previous day. Looking at investor trends, individuals and institutions bought stocks worth 15.4 billion KRW and 2.5 billion KRW respectively, while foreigners alone net sold stocks worth 18.2 billion KRW.

Among the top market capitalization stocks, Celltrion Healthcare traded up 2% at 61,200 KRW. Following were Pearl Abyss (0.21%), Kakao Games (0.46%), HLB (1.68%), Celltrion Pharm (2.15%), Seegene (1.71%), and L&F (0.89%), which rose, while EcoPro BM (-3.10%), L&F (-4.2%), and Wemade (-1.90%) declined.