Article in 2024-02-03 20:00:00
Article modified 2024-02-03 18:37:34
KOSPI recorded its highest rate of increase this year and recovered to the 2600 level. Foreigners and institutions bought over 2.5 trillion worth of KOSPI stocks, leading the stock market to soar. Low PBR (price-to-book ratio) stocks were particularly strong due to expectations of the ‘corporate value up programme’ being promoted by the financial authorities this month.
According to the Korea Exchange on the 2nd, KOSPI recorded 2615.31, up 2.87% from the previous day. It has been a month since the 2nd of last month (2669.81) that KOSPI surpassed the 2610 line. On this day, foreigners led the stock market. Foreigners bought the KOSPI at KRW 1.895 trillion, the highest since the KRW 2.3 trillion on the 11th of last month, which included bulk trading volume (block deal) after hours of the Samsung Electronics family. The organization bought 642.4 billion won on this day. Individuals began to take profits by selling a net 2.4891 trillion won in response to the surge in stock prices, which is also the highest on record. The top 10 stocks in market capitalization closed higher, and among all stocks (937), 76% (713) rose.
A dealer works in the dealing room of Hana Bank in Myeong-dong, Jung-gu, Seoul on the 2nd when KOSPI closed at 2615.31, up 72.85 points (2.87%) from the previous trading day (2542.46). The KOSDAQ index ended trading at 814.77, up 16.04 points (2.01%) from the previous trading day (798.73), and the won-dollar exchange rate in the Seoul foreign exchange market closed at 1322.6 won, down 9.2 gained from the previous trading day (1331.8 won). News
Analysis suggests that the surge in the stock market on this day was influenced by the recent strong trend of stocks and low PBR expectations due to the strong performance of US technology stocks. PBR is a measure of market capitalization divided by the company’s assets. If PBR is lower than 1, the company’s stock price is considered to be undervalued. Financial authorities have announced they are announcing a corporate value up program this month to encourage undervalued companies to increase shareholder returns.
Accordingly, the rapid rise in sectors such as insurance, automobiles, securities, and banking, which have many low PBR stocks, has continued from the 24th of last month until today. During this period, the KRX Insurance Index rose the most at 25.04%, followed by KRX Automobile (18.40%), KRX Bank (18.09%), and KRX Securities (17.11%).
On this day, Hyundai Motors and Kia rose 9.13% and 12.42%, respectively, recording a 52-week high, while KB Financial Group and Hana Financial Group also rose 8.16% and 7.50%, respectively , to record new highs. Insurance stock DB Non-Life Insurance also rose 7.94%, breaking an all-time high. Stocks of holding companies with low PBR also show overall strong performance.
The fact that major major technology companies such as America’s Meta, Amazon, and Apple announced earnings that exceeded expectations also led to the increase in domestic stock prices. Researcher Dong-gil of Shinhan Investment & Securities said, “Concerns that weighed on the Korean stock market in January, including interest rates falling due to a slowdown in employment, oil prices falling due to the resolution of geopolitical conflicts, the Institute of Supply Management . manufacturing index (ISM), and the publication of favorable export and import data for Korea in January “The Korean stock market continued to be strong in February due to indicators that removed many of these concerns,” he analyzed.
KOSDAQ also closed at 814.77, up 2.01% from the previous day. Foreigners and institutions led the increase with net purchases of 61.4 billion won and 96.6 billion won, respectively.
The stock market expected the strong performance focused on undervalued stocks to continue for some time. However, the fact that profit-taking sentiment is increasing due to the excessive gains in the US and Japanese stock markets last month is a worrying factor. Kyeong-min Lee, a researcher at Daishin Securities, said, “While the United States is suffering from profit-making selling, KOSPI has already spent large-scale foreign futures and selling programs,” and predicted, “A rapid short-term cyclical . selling will continue during the KOSPI rebound.” However, he added, “It is time to be wary of the overheating burden caused by a short-term surge.”
#KOSPI #surges #due #foreign #buying.. #desire #find #PBR #stocks
