On President Lee Jae-myung’s First Day in Office… KOSPI Kicks Off by Surpassing 2,700 With a 'Celebratory Start'

KOSDAQ Also Up by Over 1%

On May 4th, the first day of President Lee Jae-myung’s term, both the KOSPI and KOSDAQ indices are rising together. This is interpreted as a recovery in investor sentiment as political uncertainty has eased.

As of 9:09 AM, the KOSPI is up 40.24 points (1.49%) from the previous session, standing at 2,739.21. The KOSPI started trading at 2,737.92 and saw a slight further increase.

In the Korea Exchange, foreigners alone are buying ₩2,164 billion worth of stocks, driving the index higher. Individuals and institutions are net selling ₩1,972 billion and ₩206 billion, respectively.

Most of the top KOSPI stocks by market capitalization are also showing strength. Among them, SK hynix (+6.51%) stands out, with Samsung C&T Corporation (+2.78%), Shinhan Financial Group (+2.33%), KB Financial Group (+1.8%), LG Energy Solution (+1.76%), Kia (+1.7%), Doosan Enerbility (+1.34%), Hyundai Motor Company (+0.65%), and Samsung Electronics (+0.53%) also rising.

The KOSDAQ index is also up, gaining 8.43 points (1.14%) to 748.72 compared to the previous session. The KOSDAQ opened at 749.13, up 6.84 points (1.19%) from the previous session.

In the KOSDAQ market, foreigners and institutions are net buying ₩256 billion and ₩209 billion, respectively, leading the market’s strength. Individuals are net sellers by ₩410 billion.

Top KOSDAQ stocks by market capitalization are also booming. Led by Alteogen (+9.71%), Leeno Industrial (+6.4%), EcoPro (+5.23%), PharmaResearch (+4.65%), EcoPro BM (+3.6%), Rainbow Robotics (+3.53%), Samchundang Pharm (+2.53%), and Hugel (+1.04%) are all in the green. However, Peptron (-30%) has dropped to its price limit floor.

The KRW-USD exchange rate started trading at ₩1,375, up ₩1.9 from the previous session.

At 6:21 AM today, President Lee Jae-myung officially began his term as the 21st President. Previously, KB Securities stated that, with the reduction of uncertainty following the presidential election, a short-term upward momentum could be expected. Kim Dong-won, Head of Research at KB Securities, said in a report, “The KOSPI has entered a phase where we can expect short-term upward momentum thanks to the easing of uncertainty after the election of the president,” adding, “By sector, focus is on domestic-demand stocks, and expectations for capital market structural reform (Commercial Act amendment) are likely to further influence the market.”

Overnight, the New York stock market also rose. On the 3rd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed up 214.16 points (0.51%) to 42,519.64. The S&P 500 index rose 34.43 points (0.58%) to 5,970.37, and the NASDAQ index gained 156.34 points (0.81%) to close at 19,398.96.

This is seen as reflecting optimism regarding US-China trade negotiations. US President Donald Trump and Chinese President Xi Jinping are set to have a phone call this week.

Reporter Jin Young-gi, Hankyung.com young71@hankyung.com