Increased KOSPI Buying Targeting Institutions and Dividends
Yuanta Securities Soars Amid Sale Rumors, Then Narrows Gains
[Asia Economy Reporter Hwang Yoon-joo] On the 27th, the KOSPI and KOSDAQ indices started higher. Ahead of the ex-dividend date (28th), institutional buying inflows are driving the indices. Additionally, the Chinese government's expansion of 'With Corona' measures is boosting reopening expectations, which is also positive.
As of 10:46 a.m. on the day, the KOSPI was trading at 2328.31, up 0.48% (11.17 points) from the previous day. The KOSPI opened at 2327.52, up 0.45% (10.38 points), and jumped to 2327.52 shortly after the opening.
At the start of trading, institutions were the sole buyers, but currently foreigners and institutions are net buying 3.9 billion KRW and 337.2 billion KRW respectively. Foreigners are also purchasing 210.8 billion KRW in the futures market, and institutions have more than doubled their buying compared to the start of trading. This is interpreted as strong institutional investor buying ahead of the ex-dividend date. On the other hand, individuals are net selling 333.7 billion KRW.
Among the top market capitalization stocks, LG Energy Solution (-0.22%) and Samsung SDI (-0.48%) turned to a downward trend. LG Chem's +1.13% rise is the highest. Samsung Biologics +0.97%, Celltrion +0.85%, Naver +0.84%, Hyundai Motor +0.63%, Samsung Electronics +0.53%, and Kia +0.31% follow.
The Chinese government's 'With Corona' measures are also having a positive effect. China will abolish facility quarantine for overseas arrivals from January 8 next year and will also eliminate PCR testing. This means China may end its 'Zero Corona Policy.' Expectations for increased Korean exports are rising, and major export stocks such as semiconductors and automobiles are all on the rise.
KH Vatec, which produces hinges, the folding and unfolding parts of foldable phones, is up +0.69%. Automotive parts stocks such as HL Mando +0.69% and Hyundai Mobis +0.24% are also rising.
Cosmetics stocks are also strong due to Chinese reopening expectations. Representative stocks include Cosmecca Korea +23.59%, Tony Moly +17.63%, Yeonwoo +14.33%, and Amorepacific +5.26%.
Yuanta Securities surged more than 16% immediately after the opening due to sale rumors but is currently up 3.05%. Before the opening, reports emerged that Yuanta Group signed a mandate contract to sell Yuanta Securities. As Woori Financial Group was mentioned as a potential buyer, the stock soared over 16%, but after both sides denied it, the gains were given back.
As of 10:59 a.m., the KOSDAQ was at 702.64, up 1.15% (7.96 points) from the previous day. It opened at 697.25, up 0.37% (2.57 points). Foreigners and institutions are net buying 67.2 billion KRW and 124.4 billion KRW respectively, strongly supporting the index. Individuals are selling 190 billion KRW.
Among the top market capitalization stocks, all are rising except Celltrion Pharm (-0.40%) and Studio Dragon (-0.69%). HLB's +3.31% rise is the highest. Followed by Pearl Abyss +1.73%, EcoPro +1.58%, and L&F +1.42%. Kakao Games' +1.41% price increase is notable.
On the 27th, the KOSPI and KOSDAQ started higher, while the won-dollar exchange rate continued its downward trend. Employees are working in the dealing room at the Hana Financial Group Myeongdong Building in Seoul. Photo by Heo Younghan younghan@
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