Kospi Opens Up 2.61% at 5,960.00, Reclaims 5,900 Level

Korea Economic Daily

Summary

The Kospi rose 2.39%%, reclaiming the 5,900 level, while its opening price of 5,960.00 put the 6,000 mark within reach.
Retail investors remained net buyers in both the benchmark and Kosdaq markets, while foreign and institutional investors were net sellers, with heavyweight stocks such as Samsung Electronics, SK Hynix, and Hyundai Motor mostly trading higher.
Hopes for ceasefire talks between the US and Iran helped lift all three major US stock indexes overnight, supporting a recovery in investor sentiment in South Korea's stock market.

Forecast Trend Report by Period

The Kospi regained the mid-5,900 range in early trading, supported by hopes that back-channel talks between the US and Iran are continuing.

As of 9:05 a.m. on Aug. 14, the Kospi was up 138.63 points, or 2.39%, at 5,947.25 from the previous session. It opened at 5,960.00, bringing the 6,000 level into view.

Retail investors were driving the advance, buying a net 237.3 billion won worth of shares on the benchmark market. Foreign and institutional investors were net sellers of 146.1 billion won and 113.0 billion won, respectively. Foreign investors were also net sellers of 117.3 billion won in Kospi 200 futures.

Most large-cap stocks were higher.

Samsung Electronics and SK Hynix rose 2.49% and 3.75%, respectively, while SK Square gained 4.14%.

Hyundai Motor climbed 3.81% and Kia added 2.31%.

Hanwha Aerospace fell 0.72%, while Samsung Biologics slipped 0.58%.

The Kosdaq rose 18.21 points, or 1.66%, to 1,118.05. Retail investors bought a net 147.2 billion won worth of shares on the junior bourse, while foreign and institutional investors sold 134.5 billion won and 12.4 billion won, respectively.

Most of the Kosdaq's top market-value stocks also advanced.

EcoPro and EcoPro BM gained 2.44% and 2.01%, respectively.

Alteogen rose 1.7%, ABL Bio added 1.68%, HLB advanced 3.6%, Kolon TissueGene gained 1.92%, and LigaChem Biosciences rose 0.9%. Among the top 10 biotech stocks by market capitalization, only Samchundang Pharm fell, dropping 2.09%.

Lino Industrial was little changed.

All three major US stock indexes closed higher overnight on hopes that ceasefire talks between the US and Iran, which had broken down over the weekend, were continuing behind the scenes. On Aug. 13, the Dow Jones Industrial Average rose 301.68 points, or 0.63%, to 48,218.25 on the New York Stock Exchange. The S&P 500 gained 69.35 points, or 1.02%, to 6,886.24, and the Nasdaq Composite climbed 280.84 points, or 1.23%, to 23,183.74.

Stocks briefly traded lower early in the session. Buying sentiment revived after reports said the US and Iran were maintaining back-channel communications and exchanging conditions for a ceasefire even after the talks collapsed. President Donald Trump said, "I heard from Iran today," and added, "They strongly want a deal." Specific details about discussions related to Iran's nuclear program also supported investor sentiment.

Han Kyung-woo, Hankyung.com reporter case@hankyung.com