LG Group Stocks Rally, Samsung Electronics Management Vacancy Concerns Eased
Close Watch on U.S. Economic Indicators Later This Week
On the 26th, the domestic stock market closed higher across the board. Concurrent net buying by foreigners and institutions served as the driving force behind the stock price increase.
On that day, the KOSPI closed at 2,643.94, up 28.13 points (1.08%) from the previous day. The index opened at 2,628.09, up 12.28 points (0.47%). Foreigners and institutions net purchased 347.8 billion KRW and 260.9 billion KRW respectively, while individuals sold off 681.2 billion KRW.
Ji-won Kim, a researcher at KB Securities, explained, "The domestic stock market rose as foreign capital flowed mainly into large-cap stocks, including the electrical and electronics sectors," adding, "The continued strength in the automobile sector helped the KOSPI rebound successfully after three days."
On the same day, LG Group stocks showed remarkable strength on the KOSPI. LG Group Chairman Koo Kwang-mo expressed his commitment to actively fostering the battery industry at the shareholders' meeting, leading to consecutive gains in LG Energy Solution (7.30%), LG Chem (4.82%), LG Innotek (4.48%), and LG Electronics (2.42%). Additionally, Doosan (4.86%), Hyosung Heavy Industries (4.15%), Samsung SDI (3.22%), SK Hynix (2.88%), and Samsung Electronics (2.68%) rose. Pungsan's stock price jumped about 7% amid the copper price hitting a new high. Conversely, Samsung Card fell 7% due to the ex-dividend date. HD Hyundai Electric (-4.03%), Korea Aerospace Industries (-3.66%), Yuhan Corporation (-3.34%), Samsung Fire & Marine Insurance (-3.49%), and SK Biopharm (-3.07%) also showed declines.
On the same day, the KOSDAQ closed at 716.48, up 5.22 points (0.73%). The index opened at 714.36, up 3.10 points (0.44%), initially turned weak in early trading but ultimately succeeded in rebounding. Foreigners and institutions bought 64 billion KRW and 67 billion KRW respectively, while individuals net sold 131 billion KRW.
On the KOSDAQ, theme stocks related to Lee Jae-myung, leader of the Democratic Party of Korea, such as Orient Bio, Dongshin Construction, Estaco, and ATEC, all hit the daily upper limit. This was due to investors rushing in for short-term gains ahead of the appeal trial results for Lee’s violation of the Public Official Election Act. Other stocks that rose included Park Systems (5.38%), Pharma Research (5.63%), Lunit (4.89%), and EO Technics (4.70%). Meanwhile, Daejoo Electronic Materials (-8.88%), Naturecell (-7.63%), and Taesung (-5.23%) saw their stock prices fall.
Researcher Kim noted, "Due to valuation burdens from recent rapid rises, some shipbuilding and defense stocks continued to see selling pressure," adding, "Concerns about increased volatility due to the resumption of short selling on the 31st have also been raised." Amid confirmed contraction in U.S. consumer sentiment and spreading economic uncertainty, it is analyzed that cautious sentiment will increase ahead of major economic data releases scheduled for later in the week.
On the 28th, the U.S. Department of Commerce will release the February core Personal Consumption Expenditures (PCE) price index. One day earlier, on the 27th, weekly initial jobless claims and the finalized GDP growth rate for the fourth quarter of last year will be announced. On April 4th, the U.S. Department of Labor is expected to provide more accurate information on the U.S. labor market through the March employment report.
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