KOSPI surpasses 5,000 for the second consecutive day, led by strong gains in the New York stock market and retail investor buying momentum

Source: BlockMedia Original Title: [Market Opening] Is the New York Rally Drawing More Retail Investors…KOSPI Continues ‘Five Thousand Points’ for the Second Day Original Link:

KOSPI Surpasses 5000 Midday Again

On the 23rd, KOSPI started strong and broke through the 5000 mark again. This follows the historic crossing of 5000 for the first time the previous day, with retail buying continuing, compounded by the positive momentum from the New York stock market.

According to the Korea Exchange, as of 9:33 AM, the KOSPI index was up 58.60 points(1.16%) from the previous trading day, recording 5010.13. The KOSPI started at 4984.08, then expanded its gains, touched the 5000 level during the day, fell back to the 4000s, but quickly rebounded strongly to reach the 5010 level again.

The top 10 market capitalization stocks on the KOSPI show mixed movements. Samsung Electronics rose 1.84% from the previous day to 156,100 won, LG Energy Solution increased 0.72%, and Samsung Biologics gained 0.73%. Hyundai Heavy Industries rose 3.26%, and Doosan Enerbility increased 2.33%, with defense stocks also performing strongly.

Conversely, SK Hynix declined slightly by 0.13% to 754,000 won, and Hyundai Motor fell 0.19% to 528,000 won. Hanwha Aerospace and Kia each declined 1.40%, showing weakness.

In terms of supply and demand, individual investors bought 103.7 billion won worth of stocks, while foreigners and institutions sold 87.5 billion won and 1.7 billion won, respectively.

New York Stock Market Continues Two-Day Rally…‘Taco Trade’ Persists

Last night, the New York stock market continued its rally for the second consecutive day. Investor sentiment was reportedly boosted by news that President Donald Trump would negotiate Greenland’s annexation issue.

By the close of trading on the 22nd(local time), the Dow Jones Industrial Average rose 306.78 points(0.63%) to close at 49,384.01. The S&P 500 index increased 37.73 points(0.55%) to 6,913.35, and the Nasdaq Composite gained 211.20 points(0.91%) to 23,436.02.

President Trump continued the so-called ‘TACO·Trump Always Chickens Out’ trade for the second day, leveraging uncertainties from pushing major agendas as buying opportunities. After dismissing the possibility of military force regarding Greenland and withdrawing plans to impose tariffs on major European countries, investors interpreted these policy reversals as excessive volatility and bought in.

Adding to market confidence, the news that the US, Ukraine, and Russia are initiating a tripartite peace talks for the first time also eased concerns. Ukrainian President Volodymyr Zelensky announced after a summit with former President Trump in Davos, Switzerland, that “from the 23rd, officials from the US, Ukraine, and Russia will discuss a peace plan in the UAE(UAE) over two days,” calling it the “first tripartite meeting.” Zelensky viewed the meeting as a positive signal.

Markets also interpret Ukraine’s securing of some level of security guarantees from the US as a geopolitical risk mitigation factor.

Eric Pan, chief market strategist at Great Valley Advisor Group, said, “Statements from the White House are generally part of larger negotiations,” and “the noise and volatility arising from this process have mostly served as buying opportunities.”

Strong Economic Data Boosts Market Sentiment

Macro indicators showed resilience. According to the US Department of Commerce, the real GDP growth rate for Q3 was revised to an annualized 4.4% increase from the previous quarter, the highest in about two years since the 4.7% growth in Q3 2023.

Amid rising incomes and consumption in US households since November last year, inflation remained moderate, sending positive signals to the market.

The US Department of Commerce reported that the November core personal consumption expenditures (PCE) price index, excluding volatile food and energy, rose 0.2% from the previous month, matching October’s increase.

Including food and energy, the overall PCE price index also increased 0.2% month-over-month, maintaining a steady pace without excessive inflation, supporting consumer spending.

Lee Sung-hoon, researcher at Kiwoom Securities, commented, “With geopolitical concerns from Greenland easing and strong economic indicators, US stocks rose for the second day,” adding, “As geopolitical issues ease, the market is expected to refocus on upcoming corporate earnings reports led by big tech and Federal Reserve monetary policy.”

Tesla and Meta are scheduled to release earnings on the 28th(KST), Apple and Amazon on the 29th(KST), and Alphabet on February 4th(KST).

KOSDAQ Opens Higher at 977

At the same time, the KOSDAQ index is trading at 976.67, up 6.32 points(0.65%) from the previous day. It opened at 977.15, up 6.80 points(0.70%) from the previous day.

In the KOSDAQ market, top market cap stocks show mixed trends. Alteogen rose 1.35%, while EcoPro BM and EcoPro declined 0.75% and 0.48%, respectively.

Biotech stocks generally gained. ABCL Bio rose 2.23%, Samchun Pharma increased 2.37%, and HLB also rose 2.82%, participating in the upward trend.

Additionally, Kolon Tissuzen surged 5.14%, showing notable strength, and Ligachem Bio increased 3.05%. Rainbow Robotics gained 0.20%, and Peptron rose 0.84%, showing relatively limited gains.

In terms of supply and demand, individuals and institutions are net buyers with 14 billion won and 23.6 billion won, respectively, while foreigners are net sellers with 37.1 billion won.

In Seoul’s foreign exchange market, the won-dollar exchange rate opened at 1,465.0 won, down 4.9 won from the previous trading day’s weekly closing price.