US Soft Landing and China's Stimulus 'Double Boost' Ineffective
KOSPI on 27th Rises Then Falls in Morning
Cosmetics and China-Related Stocks, AR, Metaverse, Entertainment Show Strength
The warm breeze blowing from the so-called G2, the United States and China, appears powerless in front of the 'national mourning.'
The previous day, the U.S. stock market closed with all three major indices rising simultaneously. The market responded with buying to signals indicating a soft landing of the economy, including favorable employment data and GDP growth rates. Additionally, with Wall Street analysts repeatedly suggesting a 'real rebound' in the Chinese economy due to China's large-scale economic stimulus measures, the atmosphere was optimistic. The world's first and second largest GDP countries both had positive outlooks. Accordingly, the domestic stock market was also expected to benefit, but so far, it has been disappointing.
On the 27th, the KOSPI turned downward during the session. As of 10:55 a.m., it was trading at 2668.39, down 0.12% (3.18 points) from the previous day. The KOSPI opened at 2674.58, up 3.01 points (0.11%) from the previous close, reached a high of 2681.45 shortly after the opening, then battled near the opening price before eventually turning downward.
By investor type, foreigners continued their buying streak for the second consecutive day with net purchases of 257.1 billion KRW. Individuals also supported the market with net purchases of 14.2 billion KRW. On the other hand, institutions were net sellers with 251.8 billion KRW.
416 stocks were on the rise, 448 stocks declined, and 70 stocks remained unchanged. Among the top 10 stocks by market capitalization, only SK Hynix rose by 2.82% and KB Financial by 2.09%, while the rest declined. Although the 'semiconductor winter' theory faded due to the 'surprise earnings' of U.S. Micron, Samsung Electronics was down 0.31%. Overall, there is a trend of capital flowing into companies with strong 'Chinese characteristics.' Cosmetics companies with high sales to China, Amorepacific and LG Household & Health Care, rose by 6.18% and 6.61%, respectively. Fashion company F&F, with over 30% of sales from China, also rose 7.79%. F&F is a company genuinely committed to China, having expanded its business there even as foreign companies withdrew during the economic downturn.
The KOSDAQ index was trading at 777.27, down 0.25% (1.91 points) from the previous day.
By investor type, individuals were buying 158.7 billion KRW, while foreigners and institutions were selling 119.2 billion KRW and 34.5 billion KRW, respectively.
712 stocks were rising, 846 stocks were falling, and 116 stocks were unchanged. Among the top 10 stocks by market capitalization, all were declining except for Ecopro BM (0.26%) and Classys (3.13%). Most entertainment stocks such as SM Entertainment (2.27%), JYP Ent. (3.61%), and YG Entertainment (5.81%) were rising. The securities industry's outlook that earnings improvement will accelerate from the fourth quarter, inclusion in the Value-Up Index (SM, JYP), and still significant, though weaker than before, ties with China are interpreted as reasons for the rise. Additionally, stocks related to augmented reality (AR) and the metaverse are also stirring, supported by Meta's launch of the AR new product 'Orion.' Maxst, classified as an AR-related stock, hit the daily limit up (29.86%), and Dexter, Raontech, and Vernect showed double-digit percentage gains.
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