KOSPI Maintains 2700 Level... Inflow of Foreign Investors

Continued Rise Despite Previous Day's Weakness in US Stock Market
Samsung Electronics, LG Energy Solution Show Upward Trend
Game Stocks Surge on KOSDAQ

On the 4th, dealers were working in the dealing room of Hana Bank in Euljiro, Seoul. On that day, the KOSPI index opened at 2714.83, up 7.01 points (0.26%) thanks to buying by foreigners and institutions. The KOSDAQ started at 888.51, down 3.09 points (0.35%). The won-dollar exchange rate opened at 1202 won, down 4.4 won. Photo by Moon Honam munonam@

[Asia Economy Reporter Hwang Junho] On the morning of the 4th, the KOSPI has maintained an upward trend for the third consecutive trading day. It appears to be settling above the 2700 mark due to inflows from foreign and institutional investors.

As of 10:20 AM, the KOSPI is at 2732.80, up 0.92% from the previous close. While individual investors, who had been supporting the index, have net sold stocks worth 205 billion KRW, foreign and institutional investors have shown net buying intentions of 35.6 billion KRW and 165.5 billion KRW respectively.

Among all listed stocks, 536 are on the rise. Although technology stocks fell in the U.S. market the previous day, the impact on the domestic market seems limited. Among the top market capitalization stocks, Samsung Electronics, the perennial leader, is trading up 0.68% at 73,800 KRW. LG Energy Solution is showing a sharp rise, trading intraday at 500,000 KRW per share. As of now, this stock is up 4.40% at 498,000 KRW. Competitor Samsung SDI also rose 0.51%, reversing its earlier decline this morning. Internet leaders NAVER (2.34%) and Kakao (1.88%) are also on the rise.

By sector, the extension of social distancing measures by the government to prevent the spread of COVID-19 is evident. The paper and wood sector rose 2.84% today. With social distancing extended, packaging companies are expected to see improved earnings, leading to a concurrent rise in stock prices. Taelim Packaging (10.82%), Daeyoung Packaging (8.51%), Hanchang Paper (7.71%), and Moorim Paper (5.09%) are all on the rise. Other sectors showing gains include services (1.60%), food and beverage (1.34%), and pharmaceuticals (1.22%).

The KOSDAQ, which showed a decline early in the session, reversed to an upward trend. As of now, it is up 0.48% at 895.88. While foreign and institutional investors are net selling 22.7 billion KRW and 26.4 billion KRW respectively, individual investors continue net buying at 63.6 billion KRW.

Stock prices among the top market cap stocks show polarization. Gaming stocks are showing significant gains today. Kakao Games is trading up 9.65% at 72,700 KRW. Wemade is up 8.00% at 125,500 KRW, and Pearl Abyss is up 4.65% at 96,800 KRW. On the other hand, EcoPro BM (0.06%), L&F (0.84%), and Seegene (5.53%) are recording declines.