KOSPI and KOSDAQ Start Higher... Big Tech and Solar Power 'Smile'

On the 28th, the KOSPI index opened at 2,437.57, up 0.91% (22.04 points) from the previous trading day, as dealers were working in the Hana Bank dealing room in Euljiro, Seoul. The won-dollar exchange rate started at 1,306 won, down 7.3 won. Photo by Moon Honam munonam@

[Asia Economy Reporter Hwang Yoon-joo] The KOSPI and KOSDAQ started higher on the 29th. The rise was influenced by the previous day’s U.S. preliminary GDP growth rate recording a negative figure, highlighting expectations that the September interest rate hike will be scaled back.

In particular, following the sharp rise in U.S. big tech companies after their earnings announcements the previous day, Naver and Kakao have also surged from the early trading hours. Additionally, solar energy stocks are on the rise amid expectations of benefits from the U.S. 'Inflation Reduction Act.'

As of 9:16 AM, the KOSPI is at 2,452.35, up 0.70% (17.08 points) compared to the previous day.

Foreigners and institutions are net buyers of 37.5 billion KRW and 58.2 billion KRW respectively, while individuals are net sellers of 94 billion KRW. Foreigners are also purchasing 87.1 billion KRW worth in the futures market.

Among the top 10 market capitalization stocks, only LG Energy Solution and Hyundai Motor are flat, while the rest are all rising. Naver (+4.25%) and Kakao (+3.31%) show notable gains, likely influenced by the previous day’s sharp rises in Amazon and Apple after their earnings announcements.

Another notable group is solar-related stocks. Hanwha Solutions is trading at 42,700 KRW, up 1.07% (450 KRW) from the previous day. Following a 20.37% surge the day before, Hanwha Solutions is continuing to rise by over 1% today. OCI is also trading higher at 117,500 KRW, up 2.62% (3,000 KRW).

Solar-related stocks have attracted investment sentiment as the Russia-Ukraine war increases the likelihood that the European Union (EU) will focus on renewable energy. In particular, the possibility of the U.S. passing the 'Inflation Reduction Act' in August has also driven stock prices up.

This legislation aims to reduce carbon emissions by 40% by 2030 and includes an investment of $369 billion (approximately 481 trillion KRW) in energy and climate change programs.

[Image source=Yonhap News]

Looking at sector indices, the service sector leads with a 2.05% increase. This is followed by chemicals (+1.53%), securities (+1.49%), steel and metals (+1.45%), and transportation and warehousing (+1.32%). Meanwhile, medical precision (-0.33%) and food and beverage (-0.06%) are the only sectors declining.

As of 9:23 AM, the KOSDAQ is at 804.58, down 0.78% (6.26 points) from the previous day.

Foreigners and institutions are net buyers of 13.5 billion KRW and 13.9 billion KRW respectively, while individuals are net sellers of 26.9 billion KRW.

Among the top 10 market capitalization stocks, only Alteogen is down (-0.15%). Pearl Abyss leads with a 2.51% rise, followed by Kakao Games (+1.80%), HLB (+1.35%), and L&F (+1.14%).

By sector, construction leads with a 2.15% increase, followed by semiconductors (+1.76%), telecommunication services (+1.72%), and digital content (+1.68%).