[Asia Economy Reporter Kwon Jaehee] The KOSPI index, which started with a slight decline, closed higher near the 2350 level as the Greater China markets surged and buying pressure from foreigners and institutions flowed in.
On the 4th, the KOSPI index closed at 2348.43, up 0.83% (19.25 points) from the previous trading day. The KOSPI opened at 2325.85, down 0.14% (3.32 points) from the previous day, fluctuated throughout the morning session, and at one point fell below the 2320 level to 2316.29. However, in the afternoon session, buying pressure from foreigners and institutions led to a reversal and an upward trend.
Institutions led the market on the day, net buying stocks worth 101.1 billion KRW. Foreigners also purchased stocks worth 41.4 billion KRW. Conversely, individuals were net sellers with 145.4 billion KRW.
The domestic stock market started lower due to hawkish remarks from Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), and the Bank of England’s 0.75 percentage point interest rate hike.
Market caution also spread ahead of the U.S. October employment report released on the same day, local time.
However, as the Greater China markets surged on expectations that China might ease its 'zero-COVID' policy, domestic investor sentiment improved, turning the KOSPI upward.
On the day, the Hong Kong Hang Seng Index and the Hong Kong H-Share Index (HSCEI), composed of mainland Chinese companies listed in Hong Kong, surged by 6 to 7%.
Lee Kyungmin, a researcher at Daishin Securities, analyzed, "In the afternoon, along with the rise in Greater China markets, the won-dollar exchange rate reversed downward, and foreign investors gradually expanded their buying in both spot and futures markets, increasing the KOSPI’s gains."
Kim Seokhwan, a researcher at Mirae Asset Securities, explained, "As expectations for China’s economic reopening spread, stocks of cosmetics, casinos, and duty-free sectors, which had been weak, generally rebounded."
Among the top 10 stocks by market capitalization, all closed higher except Samsung SDI (-0.81%). Samsung Electronics (0.34%), LG Energy Solution (0.51%), Samsung Biologics (0.11%), SK Hynix (2.18%), LG Chem (1.02%), Samsung Electronics Preferred (0.57%), Hyundai Motor (0.62%), NAVER (2.96%), and Kia (1.24%) all ended up.
Cosmetics stocks such as Amorepacific (12.77%), Aekyung Industrial (10.70%), and LG Household & Health Care (6.32%), as well as casino-related stocks like Lotte Tour Development (14.49%), rose sharply amid the Greater China market strength.
By sector, textiles and apparel (4.90%), transportation and warehousing (2.82%), medical precision instruments (2.06%), securities (1.91%), telecommunications (1.70%), services (1.52%), and insurance (1.38%) mostly showed strength. Conversely, paper and wood products (-0.82%), steel and metals (-0.74%), and non-metallic minerals (-0.54%) were weak.
The KOSDAQ index closed down 0.03% (0.24 points) at 693.89. It opened at 691.69, down 0.35% (2.44 points) from the previous day, but narrowed losses thanks to buying by individuals.
By investor type, individuals were the sole net buyers with 246.2 billion KRW. Foreigners and institutions sold stocks worth 62.3 billion KRW and 173.5 billion KRW, respectively.
The top 10 stocks by market capitalization in Celltrion Pharm showed mixed results. EcoPro BM (-1.43%), Celltrion Healthcare (-1.04%), HLB (-0.40%), EcoPro (-1.65%), and Rinno Industrial (-4.17%) closed lower, while L&F (2.08%), Kakao Games (4.14%), Pearl Abyss (4.56%), and Chunbo (6.78%) ended higher.
By sector, other manufacturing (1.70%), digital content (1.38%), IT components (1.00%), and transportation (0.99%) recorded gains, whereas publishing and reproduction (-3.05%), internet (-1.34%), semiconductors (-1.01%), and computer services (-0.76%) declined.
During the day, trading value on the KOSPI and KOSDAQ markets totaled 7.8215 trillion KRW and 5.3176 trillion KRW, respectively.
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