The KOSPI and KOSDAQ indices both recovered to the 3200 and 800 levels, respectively, closing on the 4th. However, ahead of the U.S. employment data to be released this week, a wait-and-see attitude persisted, resulting in relatively quiet transactions.
The KOSPI index closed at 3200.83 on that day. It rose by 16.41 points (0.52%) from the previous day, surpassing the 3200 level for the first time since August 25 last month. In the KOSPI market, foreign investors drove the index's increase with a net purchase of 202.4 billion won. Individuals and institutions were net sellers of 284.8 billion won and 23 billion won, respectively.
The KOSPI index started the day at 3188.84 and climbed to 3205.61 early in the session. A decline in U.S. Treasury bond yields due to poor U.S. employment data released overnight provided upward momentum for the stock market. However, it lost most of its gains as the afternoon progressed. At the market close, Samsung Electronics, which has the largest market capitalization, rebounded to the 70,000 won range, barely reclaiming the 3200 level.
Among the top market capitalization stocks in the KOSPI market, Samsung Electronics, SK hynix, LG Energy Solution, Samsung Biologics, and HD Hyundai Heavy Industries showed an upward trend. Hanwha Aerospace and KB Financial saw their stock prices decline, while Hyundai Motor and Kia ended regular trading roughly flat.
On that day, the number of rising stocks in the KOSPI market was 610, exceeding the 249 declining stocks. However, investors' caution has not abated. The trading volume supports this. According to the Korea Exchange, the trading volume in the KOSPI market was recorded at 7.86 trillion won that day. This is the first time since May 27 that the daily trading volume in the KOSPI market has fallen below 8 trillion won.
In particular, the transaction volume rebounded fueled by market policy expectations following the Lee Jae-myung administration's launch, but it appears to be gradually weakening due to disappointment over tax reform proposals. The average daily trading volume in the KOSPI market decreased from 15.2 trillion won in June to 12.96 trillion won in July, then to 10.39 trillion won in August, and finally to 8.33 trillion won in September.
The KOSDAQ index showed relatively robust performance. It closed at 805.42, up 8.61 points (1.08%) from the previous day. In the KOSDAQ market, foreign investors and institutions respectively recorded net purchases of 86.3 billion won and 33.7 billion won, supporting the index's rise. Individuals were net sellers of 105.9 billion won.
Small and medium-sized pharmaceutical and biotech stocks are gaining momentum. This is highlighted by their relatively low tariff burden and classification as beneficiaries of interest rate cuts. Stocks like MedPacto, SillaJen, Helixmith, and AbClon recorded double-digit percentage increases.
Companies in shipbuilding equipment such as SAMYOUNG M-TEK, KSP, and Oriental Precision & Engineering also saw significant increases, fueled by expectations for the 'Make American Shipbuilding Great Again' (MASGA) project, which supports the shipbuilding industry in the U.S.
As the wait-and-see market continues, stock prices also show fluctuations in response to news. Following the announcement that the Ministry of National Defense would train drone warriors, shares of drone-related companies such as ALUX surged. Stocks in fittings, valves, and steel pipes rose in response to news that a delegation from Daewoo E&C visited Alaska to explore liquefied natural gas (LNG) projects.
The market's attention is focused on employment data that may influence the decision on U.S. interest rates. Following the July Job Openings and Labor Turnover Survey (JOLTS), the U.S. employment report from the Automatic Data Processing (ADP) is set to be released tonight, along with the non-farm payroll report for August from the Labor Department on the 5th.
Lee Kyung-min, a researcher at DAISHIN SECURITIES, noted, "As concerns about U.S. employment weakness continue, market expectations that the Federal Open Market Committee (FOMC) will lower interest rates in September are nearing 99%. Trust in the recent official employment data has declined, which has increased the influence of the previously released private indicators, so we must watch the ADP data as well."