KOSDAQ Index Closes Up Over 1%
Nasdaq Tech Stocks Rally, Driven by Foreign Net Buying
[Asia Economy Reporter Minji Lee] Influenced by the rise in the U.S. stock market the previous day, the KOSPI and KOSDAQ indices closed higher. The KOSDAQ index showed an increase of over 1%, driven by the strong performance of U.S. Nasdaq tech stocks and robust buying by foreign investors.
On the 29th, the KOSPI closed at 2,741.07, up 0.42% (11.51 points) from the previous trading day. The KOSPI opened at 2,745.62, up 0.59% (16.06 points) from the previous day, and successfully closed higher.
On this day, the domestic stock market closed higher influenced by the U.S. stock market's upward trend, which was supported by falling international oil prices and hopes for a ceasefire. Furthermore, as the Nasdaq index showed strength centered on tech stocks, boosted by expectations of improved earnings, the domestic market also responded positively. In the stock market, institutional investors' net buying played a significant role. Institutions net bought stocks worth 327 billion KRW, while foreigners and individuals sold stocks worth 280.3 billion KRW and 8.6 billion KRW, respectively.
The sectors with the largest gains were non-metallic minerals (2.36%) and electrical and electronics (0.82%). Among the non-metallic minerals sector, cement stocks showed a notable rise. Concerns that the supply of raw material bituminous coal would be disrupted due to the Russia-Ukraine war lifted related stocks. Seongsin Yanghoe Preferred shares hit the upper limit, and Asia Cement (9.2%), Seongsin Yanghoe (7.9%), Hanil Cement (3.6%), and Ssangyong C&E (2%) also showed gains.
Most of the top market capitalization stocks rose. Samsung Electronics (0.72%), LG Energy Solution (1.03%), SK Hynix (1.69%), NAVER (0.75%), Samsung Biologics (0.61%), Hyundai Motor (1.15%), Samsung SDI (1.69%), and Kia (0.56%) all increased.
The KOSDAQ index closed at 937.82, up 1.16% (10.72 points) from the previous trading day. The KOSDAQ started the day at 932.86, up 0.62% (5.75 points) from the previous day, and maintained an upward trend to close with over a 1% gain. The rise in the KOSDAQ index was led by foreigners and institutions. Foreigners bought stocks worth 151 billion KRW, institutions bought 84.4 billion KRW, while individuals sold stocks worth 202.6 billion KRW alone.
By sector, non-metallic minerals (3.87%), paper and wood (2.33%), and telecommunications equipment (1.87%) showed the highest gains. Most of the top market capitalization stocks in the KOSDAQ market rose. Celltrion Healthcare (1.87%), EcoPro BM (2.40%), L&F (5.05%), Pearl Abyss (0.5%), Kakao Games (4.84%), Celltrion Pharm (1.44%), Wemade (0.40%), and Chunbo (6.01%) mostly increased.
Securities experts expect that although the KOSPI showed an upward trend, it will be difficult for this momentum to continue. They reason that the current movement in the domestic stock market is driven more by psychological relief and improved supply-demand conditions rather than fundamental changes, so the market is likely to show vulnerability if psychological shifts occur in the future.
Lee Kyung-min, a researcher at Daishin Securities, analyzed, “The U.S. stock market is rising due to expectations of good corporate earnings and improved supply-demand conditions, but the domestic market faces uncertainty due to earnings concerns. If the spread between the U.S. 10-year and 2-year Treasury yields narrows significantly this week or the Russia default issue becomes prominent, U.S. supply-demand could worsen, so caution is needed for the time being.”
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