Both KOSPI and KOSDAQ Show Strength
Short Selling Banned for 43 Stocks on the 1st
Ahead of the U.S. Trump administration's announcement on reciprocal tariffs, the Korean stock market showed an early morning upward trend on the 1st, reclaiming the 2500 level.
As of 9:20 a.m., the KOSPI was trading at 2522.11, up 40.99 points (1.65%) from the previous day. The index opened at 2511.24, up 30.12 points (1.21%). Currently, institutions and individuals have net bought stocks worth 16.2 billion KRW and 3.7 billion KRW respectively, while foreigners sold stocks worth 28.4 billion KRW.
Among the top market capitalization stocks, Hanwha Aerospace (7.50%), Hanwha Ocean (4.77%), Samsung Biologics (4.04%), Kakao (3.84%), HMM (3.53%), HD Hyundai Heavy Industries (3.05%), Celltrion (2.90%), NAVER (2.41%), Samsung C&T (2.14%), Shinhan Financial Group (2.13%), KB Financial Group (1.52%), SK Hynix (1.26%), and Samsung Electronics (1.21%) are rising. On the other hand, LG Energy Solution (-0.45%) is declining.
On the morning of the 1st, the KOSPI was displayed on the status board in the dealing room of Hana Bank's headquarters in Jung-gu, Seoul. On that day, the KOSPI opened at 2511.24, up 30.12 points (1.21%) from the previous session. Photo by Yonhap News
By sector, most industries are showing strength, including medical precision instruments (4.93%), pharmaceuticals (2.81%), transportation and warehousing (2.57%), transportation equipment parts (2.27%), IT (information technology) services (2.15%), manufacturing (1.47%), finance (1.36%), insurance (1.34%), machinery equipment (1.13%), electrical and electronics (1.11%), and chemicals (1.10%).
On this day, 43 domestic listed companies including SK Hynix and Kakao were designated as short-selling overheated stocks, resulting in a one-day ban on short-selling transactions. Among KOSPI-listed companies, a total of 14 were designated, and among KOSDAQ-listed companies, a total of 29 were designated. Previously, financial authorities pointed out the possibility of increased volatility in some individual stocks following the resumption of short-selling, and to buffer this, they decided to expand the designation system for short-selling overheated stocks in a phased and temporary manner for two months until the 31st of next month.
On the 31st (local time), the Dow Jones Industrial Average (Dow Index), centered on blue-chip stocks, closed at 42,001.76, up 417.86 points (1.0%) from the previous trading day in the New York stock market. The S&P 500 Index, focused on large-cap stocks, closed at 5611.85, up 30.91 points (0.55%). The Nasdaq Index, centered on technology stocks, fell 23.7 points (0.14%) to close at 17,299.29.
The U.S. stock market initially showed a sharp decline centered on big tech companies due to reports of the possibility of President Trump's implementation of universal tariffs (WSJ), but later recovered most of the losses due to quarter-end window dressing fund demand and inflows of bargain-hunting funds. Window dressing refers to institutional investors managing the closing prices of their holdings before the fiscal year-end to boost fund performance.
At the same time, the KOSDAQ index recorded 685.03, up 12.18 points (1.81%) from the previous session. The index opened at 681.58, up 8.73 points (1.30%). Individuals net bought stocks worth 7.7 billion KRW. Foreigners and institutions sold stocks worth 5.4 billion KRW and 0.4 billion KRW respectively.
Among the top market capitalization stocks, Kolon TissueGene (4.36%), Hugel (4.33%), Voronoi (3.67%), HLB (3.45%), Alteogen (2.81%), Classys (2.66%), Celltrion Pharm (2.48%), Ligand Chem Bio (2.42%), Pharma Research (1.96%), Pearl Abyss (2.00%), Samchundang Pharm (1.82%), Lino Industrial (1.44%), and Rainbow Robotics (1.33%) are on the rise. Meanwhile, SM (-1.68%), Nature Cell (-0.70%), EcoPro (-0.50%), and EcoPro BM (-0.21%) are declining.
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