Institutions Lead 'Saja' Rally, KOSPI Rises Over 1%

On the 24th, the KOSPI opened at 2248.26, up 35.14 points (1.59%) from the previous trading day, at the Hana Bank dealing room in Jung-gu, Seoul. The won-dollar exchange rate started at 1430.0 won, down 9.8 won from the previous trading day. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Minji Lee] The KOSPI and KOSDAQ indices are showing strong upward momentum.

As of 10:41 AM on the 24th, the KOSPI stood at 2245.37, up 1.46% (32.35 points) from the previous trading day. The KOSPI opened the day at 2248.26, up 1.59% (35.14 points) from the previous close. The U.S. stock market rose on the back of falling Treasury yields and expectations of a slower pace of interest rate hikes, leading to a significant rise in the KOSPI. On this day, foreigners and institutions bought stocks worth 5.4 billion KRW and 367.8 billion KRW respectively, while individuals sold stocks worth 378.8 billion KRW alone.

In the stock market, the construction sector (3.5%) and securities sector (2.7%) showed strong gains. By stock, Dongbu Construction (11%), Ilseong Construction (10%), Taeyoung Construction (10%), DL E&C (6.8%), and Daewoo Construction (6.2%) also rose. Among securities firms, Kiwoom Securities (6.8%), Meritz Securities (4.5%), Samsung Securities (4.2%), and Hanwha Investment & Securities (3.5%) showed upward trends.

All of the top market capitalization stocks are showing gains. Influenced by last week’s Philadelphia index rising more than 3%, Samsung Electronics (1.97%) and SK Hynix (1.66%) are maintaining their upward momentum. Additionally, LG Energy Solution (1.4%), Samsung Biologics (1.77%), Samsung SDI (1.44%), LG Chem (3.17%), and NAVER (0.9%) are all showing gains.

At the same time, the KOSDAQ index is also up 2.6% (17.51 points) from the previous trading day, standing at 691.99. The index opened at 686.43, up 1.77% (11.95 points) from the previous close, and continues its upward trend. Regarding investor trends, foreigners and institutions bought stocks worth 76.2 billion KRW and 85.6 billion KRW respectively, while individuals sold stocks worth 162.6 billion KRW alone.

Looking at the top market capitalization stocks, all KOSDAQ stocks continue their upward momentum. Ecopro BM (0.19%), Celltrion Healthcare (2.66%), L&F (4.08%), HLB (4.88%), Ecopro (0.54%), Kakao Games (2.37%), Pearl Abyss (2.6%), Celltrion Pharm (2.69%), Chunbo (1.62%), and Rinno Industries (3.77%) are all maintaining strong gains.

However, experts predict that this upward momentum will not last. The only factor driving the stock price increase is the expectation that the pace of interest rate hikes will slow down. There are also concerns about an economic recession. Kim Dae-jun, a researcher at Korea Investment & Securities, explained, “The market is still in an unstable phase, so it is somewhat early to bet on the index. If there were many factors to raise stock prices, there would be less worry, but the global economy is less vibrant than before, and political uncertainties worldwide are high.” He added, “In a phase where future earnings expectations are low and multiples are decreasing, there is no need to exhaust strength prematurely.”