KOSDAQ Closes Higher Late Session on Individual and Institutional Buying
US Core Inflation Surprises Above Expectations... Russia Raises Tariffs on Export Goods
Risk Asset Sentiment Weakens... KOSPI Intraday at 2649.89
Both Major Indexes See 'Construction Sector' Strength Continuing from Yesterday
[Asia Economy Reporter Hwang Yoon-joo] The KOSPI closed slightly lower on the 11th. Inflation concerns resurfaced as the U.S. core inflation for February came out higher than expected, dampening investor sentiment. In the afternoon, news that U.S. President Joe Biden is pushing for tariff hikes on Russian exports helped the index barely defend the 2650 level. Meanwhile, the KOSDAQ started lower but closed higher due to institutional buying.
On the day, the KOSPI index closed at 2661.28, down 19.04 points (-0.71%) from the previous trading day. The KOSPI opened at 2665.95, down 14.37 points (-0.54%) from the previous day, then the decline deepened to as low as 2649.84.
Looking at investor trends, individuals alone net bought 1.0363 trillion KRW, but it was not enough to support the index. Foreigners and institutions net sold 683.2 billion KRW and 383.4 billion KRW respectively, weighing down the index.
Among the top 10 stocks by market capitalization, LG Energy Solution fell below the 400,000 KRW mark for the first time since its listing. On its first day included in the KOSPI 200, heavy short selling pushed it down to a new low of 390,500 KRW. LG Chem, removed from the KOSPI 200, fell 4.93% again from the previous day to 470,000 KRW.
Samsung Electronics (-1.69%), SK Hynix (-2.50%), Naver (-0.45%), Samsung Biologics (-0.76%), Samsung SDI (-4.37%), and Kia (-0.99%) all declined. Hyundai Motor closed flat, and Kakao (+1.50%) was the only stock to rise.
By sector, the declines were led by Electric & Electronics (-2.34%), Medical Precision (-2.21%), Chemicals (-1.69%), Manufacturing (-1.51%), Securities (-1.02%), and Pharmaceuticals (-0.58%).
On the other hand, expectations for Yoon Suk-yeol, the 20th President-elect of Korea, boosted Machinery (+4.16%) and Construction (+3.58%) to the top two gainers, followed by Distribution (+1.76%), which is considered a beneficiary of the 'reopening'.
Kim Seok-hwan, a researcher at Mirae Asset Securities, analyzed, "The U.S. February Consumer Price Index (CPI) recorded 7.9% year-on-year, increasing inflationary pressure, and risk appetite shrank due to the European Central Bank's (ECB) unexpectedly hawkish monetary policy."
The KOSDAQ index closed at 891.71, up 2.63 points (+0.30%). The KOSDAQ opened at 888.57, down 0.51 points (-0.06%), but showed high volatility in the afternoon. It turned to an upward trend late in the session due to buying by individuals and institutions.
The index was driven by buying from individuals and institutions. Individuals and institutions net bought 10.8 billion KRW and 31.6 billion KRW respectively, while foreigners net sold 39.5 billion KRW.
Among the top market cap stocks, Rino Industrial rose 2.46% to rank 10th by market capitalization. Celltrion Healthcare (+0.76%), Kakao Games (+0.67%), and Wemade (+0.29%) also closed higher. Meanwhile, EcoPro BM (-4.84%), Pearl Abyss (-5.74%), L&F (-3.46%), Celltrion Pharm (-0.43%), and HLB (-1.63%) declined.
By sector, construction, related to the new government's real estate policies, and entertainment & culture, a 'reopening' sector, rose 7.85% and 2.67% respectively, ranking among the top gainers.
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