KOSPI Closes Higher for 5 Consecutive Days... KOSDAQ Recovers 800 Level as Foreign Investors Return (Comprehensive)

KOSPI closes at 2451.49, up 0.67%
KOSDAQ recovers 800 at 803.62... first time in 30 trading days

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] The KOSPI index closed higher for the fifth consecutive trading day. Despite the U.S. recording a negative economic growth rate in the second quarter, confidence in the economy expressed by U.S. Treasury Secretary Janet Yellen and expectations of a possible slowdown in interest rate hikes stimulated foreign buying sentiment. However, the gains were somewhat limited due to weakness in the Chinese market during the session.

The KOSPI index closed at 2,451.49, up 16.22 points (0.67%) for the day. This marks five consecutive days of gains since the 25th. Foreign investors led the rise with net purchases worth 342.8 billion KRW, while institutions also contributed approximately 147.1 billion KRW. Conversely, individual investors sold off a net 493.7 billion KRW.

Technology growth stocks and companies that reported strong earnings rose, influenced by strong performances from Amazon and Apple in the U.S. NAVER closed up 4.86%, and Kakao jumped 3.31%. LG Electronics, which announced strong earnings the previous day, also ended the day up 4.85%. Hyundai Energy Solutions posted a surprise earnings report after the previous day's market close, soaring 23.77% and hitting a new high during the session.

Among KOSPI sectors, pharmaceuticals (-0.34%) and medical precision (-10.3%), which reported weak second-quarter earnings this year, continued to decline, along with electrical and electronics (-0.38%) and non-metallic minerals (-0.98%). On the other hand, securities (2.11%), construction (1.99%), transportation and warehousing (1.27%), and chemicals (1.70%) showed upward trends.

Samsung Electronics, which showed early gains, fell 0.81% as foreign investors sold about 1 million shares. SK Hynix also dropped 1.51%. Samsung SDI recorded the largest decline among the top market cap stocks, falling 1.56%.

LG Energy Solution (1.56%), Samsung Biologics (0.23%), Hyundai Motor (0.51%), and LG Chem (0.86%) closed higher.

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "After earnings announcements from major U.S. tech companies, technology stocks broadly regained investor confidence. The pharmaceutical sector showed weakness as SK Bioscience declined due to poor earnings and concerns over future uncertainties in COVID-19 vaccine sales. Overall, the industry is expected to experience increased earnings volatility due to exchange rate fluctuations and COVID-19 issues."

The KOSDAQ index closed at 803.62, up 5.30 points (0.66%). The KOSDAQ has been trading around the 700 level since the 16th of last month. Individual investors sold a net 67.7 billion KRW, while foreign and institutional investors bought net amounts of 59.9 billion KRW and 7.2 billion KRW, respectively.

Sectors such as pharmaceuticals (-0.71%), publishing/printing (-0.35%), other manufacturing (-0.54%), and computer services (-0.40%) showed weakness, while the telecommunications services sector recorded a 3% gain.

Among the top market cap stocks on KOSDAQ, HLB (3.20%) posted the largest gain, and Pearl Abyss also closed up 3.09%. EcoPro BM (0.42%), Celltrion Healthcare (0.14%), and L&F (0.09%) ended the day with slight gains. Conversely, Celltrion Pharm (-0.12%) and Chunbo (0.59%) showed slight declines, and Alteogen closed down 1.95%.

With expectations that U.S. President Joe Biden's climate change bill may pass, alternative energy-related stocks are anticipated to benefit. Daemyung Energy surged to the daily price limit and closed at that level, while Aptabio and Central Motec also hit their upper price limits.