Individual Profit-Taking 'KOSPI 2530 Was a Failure'... Lee Jae-yong's Comeback Boosts '60,000 Electronics'

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 12th, the KOSPI closed slightly higher amid a tug-of-war between individual investors selling and institutions buying. On that day, the KOSPI ended trading at 2,527.94, up 4.16 points (0.16%). Profit-taking selling prevented the index from breaking above the 2,530 level.

The index, which started at 2,519.66, rose to the 2,533 level thanks to combined buying by foreigners and institutions. However, as foreigners turned to selling and individual selling volume expanded, the gains were trimmed.

While individuals and foreigners sold 224.4 billion KRW and 14.1 billion KRW respectively, institutions bought 203.1 billion KRW, maintaining a consolidation market trend.

Lee Kyung-min, a researcher at Daishin Securities, analyzed, "Although inflationary pressures are easing, the market experienced a consolidation phase due to the absence of any special upward momentum during the session amid a continued market rebound." Han Ji-young, a researcher at Kiwoom Securities, also diagnosed, "With short-term profit-taking selling emerging, today's index showed a consolidation-type price movement with limited upside."

Large-cap stocks rose 0.09%, while mid-cap and small-cap stocks each increased by 0.49%.

By sector, construction (2.68%), electric and gas utilities (2.01%), and machinery (1.07%) rose, while telecommunications (-0.94%), textiles and apparel (-0.59%), and services (-0.57%) declined. Among the top market capitalization stocks, Kia (1.98%), Hyundai Motor (1.55%), and LG Chem (1.06%) rose. LG Energy Solution (-2.44%), Celltrion (-2.12%), and Kakao (-1.43%) closed lower.

Notably, Samsung Electronics' recovery above the 60,000 KRW mark drew attention. Samsung Electronics rose 300 KRW (0.50%) from the previous trading day to 62,000 KRW, marking a return to the 60,000 KRW level after three trading days. On the same day, President Yoon Suk-yeol stated, "The targets and scope of the pardon were carefully decided after broadly gathering opinions from various sectors to overcome the difficult economy," and granted special pardons and reinstatements to four major business figures, including Samsung Electronics Vice Chairman Lee Jae-yong and Lotte Group Chairman Shin Dong-bin. Following this, Vice Chairman Lee, who was serving a 2.5-year prison sentence confirmed in the state affairs manipulation case and was paroled in August last year, can now fully engage in management activities. Although Lee completed his sentence last month, he was previously restricted from employment for five years and thus unable to participate in management. Lee expressed his intention to "work hard for the national economy." Following the news of Lee's reinstatement, Samsung Electronics' stock price showed intraday gains exceeding 1%.

Meanwhile, the KOSDAQ index closed at 831.63, down 0.52 points (0.06%) from the previous trading day. Individuals and foreigners were net buyers of 89.7 billion KRW and 6.4 billion KRW respectively, while institutions were net sellers of 78 billion KRW. Among the top market capitalization stocks, Cheonbo (1.30%) and CJ ENM (0.79%) rose. Pearl Abyss (-4.86%), EcoPro (-4.54%), and Alteogen (-2.71%) declined.