KOSPI Rebounds for 2 Consecutive Days... Settles at 2560 Level on Individual Buying Momentum

Continued Rebound on the 7th Following 6 Days
Oversold Conditions Drive Continued Low-Price Buying
Pharmaceuticals and Bio Sector Lead Index Rally

The KOSPI succeeded in rebounding for the second consecutive trading day.

[Image source=Yonhap News]

On the 7th, the KOSPI closed at 2568.41, up 46.26 points (1.83%) from the previous session. The KOSPI started at 2515.27, down 6.88 points from the previous day's closing price, but buying momentum flowed in immediately after the opening, leading to a successful reversal to the upside. The KOSPI hit an intraday high of 2594.83 but showed a 'strong start, weak finish' pattern as the gains were limited in the afternoon.

By investor type, individuals were the sole net buyers with 293.7 billion KRW. Foreigners sold 18.1 billion KRW, and institutions sold 306.2 billion KRW.

By sector, Medical Precision (6.79%), Pharmaceuticals (5.07%), Telecommunications (3.91%), Insurance (3.51%), Electric and Gas Utilities (2.82%), and Food and Beverages (2.78%) showed strong performance. All sectors except Chemicals (-2.85%) rose.

730 stocks closed higher, 176 stocks closed lower, and 30 stocks were unchanged. Among the top 10 market capitalization stocks, Samsung Electronics (3.03%), SK Hynix (3.42%), Samsung Biologics (3.45%), and Celltrion (8.24%) outperformed the index gains. However, LG Energy Solution (-3.71%), Kia (-1.07%), and POSCO Holdings (-1.36%) closed lower.

The previous day, the U.S. New York stock market rebounded, overcoming the shock of 'Black Monday,' which recorded the largest drop in two years. Although some called it an 'uneasy rebound' as the losses were not fully recovered, the downtrend appeared to have stabilized.

Lee Jaewon, a researcher at Shinhan Investment Corp., said, "The index was driven by strong performances in pharmaceuticals and bio sectors, buoyed by expectations of interest rate cuts, the resurgence of COVID-19, and strong earnings from Celltrion." He added, "On the other hand, game stocks and secondary battery stocks underperformed the index due to disappointing earnings from representative stocks." He also noted, "Even when bargain hunting occurs due to excessive declines, a process of distinguishing quality stocks continues," emphasizing, "Earnings and shareholder returns remain crucial."

The KOSDAQ index closed at 748.54, up 15.67 points (2.14%) from the previous day.

By investor type, individuals and institutions bought 125.2 billion KRW and 33.5 billion KRW, respectively. Conversely, foreigners were net sellers of 159.1 billion KRW.

Among 1,305 stocks that rose and 290 that fell, 64 stocks were unchanged. Among the top market capitalization stocks, Samchundang Pharmaceutical (4.39%), Classys (12.83%), Ligand Bio (7.43%), and Lino Industrial (5.63%) showed particularly strong performance. In contrast, secondary battery and battery-related stocks such as EcoPro BM (-3.76%), EcoPro (-3.17%), and Enchem (-3.99%) were weak.