KOSPI and KOSDAQ Both Turn Up... Despite Increased Uncertainty, Individuals Are 'Buying'

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Both the KOSPI and KOSDAQ indices turned upward. Although the financial markets started lower due to the financial sanctions imposed on Russia by the US and other Western countries, individual investors' buying momentum has driven our stock market higher.

As of 10:31 AM on the 28th, the KOSPI was at 2,687.16, up 0.39% (10.40 points) compared to the previous trading day. The KOSPI opened at 2,663, down 0.51% (13.76 points) from the previous day, but gradually narrowed its losses. At this time, investor trends show foreigners and institutions sold 99.6 billion KRW and 166.2 billion KRW respectively, while individuals alone net bought 275.9 billion KRW.

Initially, with all three major US indices closing sharply higher, a 1.5% rise was expected at the start of our market. However, news that could affect our market, such as the US and Western countries' SWIFT sanctions on Russia, President Vladimir Putin's nuclear weapons card, and the scheduled talks between Russia and Ukraine today, have increased volatility in our stock market.

Securities experts forecast that due to the Ukraine crisis, volatility will continue with the ruble's value falling and gold prices rising, and they expect our stock market to remain cautious for the time being.

Seo Sang-young, Director at Mirae Asset Securities, said, "Initially, the domestic market was expected to start about 1.5% higher due to the US market's rise, but the high-intensity sanctions such as the SWIFT blockade on Russia by the US and Europe have been a significant burden on the financial market," adding, "As a result, after-hours futures plunged over 2%, and our market is showing a slightly weak tone."

By sector, electricity and gas (5.43%), machinery (5.24%), construction (2.77%), textiles and apparel (1.73%), steel and metals (1.35%), distribution (0.91%), and chemicals (0.63%) showed gains. Among the top market cap stocks, Samsung Electronics (-0.56%), LG Energy Solution (-0.95%), Samsung Electronics Preferred (-0.15%), Samsung Biologics (-0.53%), and Kakao (-0.11%) declined. On the other hand, Naver (0.16%), LG Chem (0.54%), and Samsung SDI (1.30%) showed gains.

At the same time, the KOSDAQ index was trading at 879.46, up 0.74% (6.48 points) from the previous day. The KOSDAQ opened at 870.27, down 0.31% (2.71 points) from the previous day. Looking at investor trends, individuals alone net bought 93.4 billion KRW, while foreigners and institutions net sold 25.4 billion KRW and 62.7 billion KRW respectively.

By sector, all sectors except transportation (-0.34%) were on the rise. General electric and electronics (2.74%), construction (2.16%), digital content (2.16%), entertainment and culture (1.94%), telecommunications equipment (1.86%), and metals (1.71%) led the gains. Among the top market cap stocks, EcoPro BM (3.5%), L&F (1.99%), Pearl Abyss (0.74%), Kakao Games (1.10%), and WeMade (7.36%) showed upward trends.