Both Markets Open Slightly Higher... KOSPI Tops 2,590 for First Time in Nearly Two Months

Foreign Investors and Institutions Net Buyers on KOSPI
Defense and Bio Sectors Weaken

Both the KOSPI and KOSDAQ indices opened with slight gains. The market appeared to be in a wait-and-see mode, as optimism over a potential resolution of the US-China trade negotiations was mixed with investor caution.

On May 12, the KOSPI started at 2,593.94, up 0.65% from the previous trading day. This is the first time the KOSPI has opened above the 2,590 level in about two months, since March 28. As of 9:26 a.m., the index had slightly pared its gains, recording 2,588.00.

By investor group, foreign investors and institutions were net buyers, purchasing 9.5 billion won and 21.7 billion won worth of shares, respectively. Individual investors were net sellers, offloading 19.8 billion won.

Most sectors were on the rise. The paper and wood sector surged by 4.02%. Several sectors rose by more than 3%, including machinery and equipment (3.28%), construction (3.10%), and securities (3.04%). Transportation and storage (1.75%), finance (1.22%), and distribution (1.01%) also posted significant gains. On the other hand, pharmaceuticals (-2.89%), medical and precision instruments (-0.66%), and transportation equipment and parts (-0.62%) declined.

Among the top 10 stocks by market capitalization, SK hynix posted the largest gain at 1.8%. It was followed by Hyundai Motor (1.1%), KB Financial Group (0.7%), Kia (0.7%), Samsung Electronics (0.4%), LG Energy Solution (0.3%), and HD Hyundai Heavy Industries (0.1%). Hanwha Aerospace (-3.8%), Celltrion (-3.7%), and Samsung Biologics (-3.0%) fell.

The KOSDAQ opened at 724.47, up 0.27% from the previous session. It then turned slightly negative, recording 720.37 as of 9:26 a.m.

Individual investors were the sole net buyers, purchasing 42.8 billion won worth of shares. Foreign investors and institutions were net sellers, offloading 19.6 billion won and 7.9 billion won, respectively.

In the KOSDAQ market, the proportion of rising and falling sectors was similar. Construction (1.69%), non-metallic minerals (1.10%), textiles and apparel (0.72%), and transportation equipment and parts (0.52%) saw the biggest gains. General services (-2.57%), entertainment and culture (-1.55%), other manufacturing (-1.30%), and pharmaceuticals (-1.02%) declined.

Among the top 10 KOSDAQ stocks by market capitalization, Pharmaresearch posted the largest gain at 4.2%. It was followed by Ecopro BM (2.8%), Classys (1.5%), Rainbow Robotics (1.1%), and Ecopro (0.6%). Recochem Bio (-3.7%), Alteogen (-3.4%), Peptron (-2.4%), HLB (-2.0%), and Hugel (-1.8%) declined.