KOSPI Recovers to 3150 Level by Increasing Gains... "Perception of Excessive Decline" [fn Afternoon Market]

[Financial News] KOSPI is showing an increase of over 1% due to institutional buying. KOSPI, which had once fallen to the 3100 level during the day, recovered to the 3150 level by increasing its gains in the morning.
According to the Korea Exchange on the 4th, as of 2:25 PM, KOSPI is trading at 3151.88, up 32.48p (1.04%) from the previous trading day. On this day, KOSPI started trading at 3114.27, down 0.16% from the previous trading day.
In the securities market, institutions are net buying 2,366 billion KRW. Individuals and foreigners are net selling 2,813 billion KRW and 431 billion KRW, respectively.
By industry, machinery/equipment (3.60%), electricity/gas (2.91%), IT services (2.33%) are strong, and there are no declining industries other than transportation equipment/parts (-0.04%).
Among the top market cap stocks, Naver (5.33%), Doosan Enerbility (4.89%), and KB Financial (2.55%) are on the rise, while Hanwha Ocean (-2.81%), HD Hyundai Heavy Industries (-2.73%), and HD Korea Shipbuilding & Offshore Engineering (-1.46%) are declining.
At the same time, KOSDAQ is trading at 783.64, up 10.85p (1.40%). Institutions are buying 613 billion KRW, while individuals and foreigners are selling 47 billion KRW and 540 billion KRW, respectively.
Securities analysts analyzed that KOSPI's decline last Friday was expanded due to concerns over the tax reform plan, but the perception that the concerns were excessive is leading to a partial recovery.
Lee Jae-won, a researcher at Shinhan Investment Corp, explained, "Although there was no clear net buying entity in the morning, the perception that the decline due to concerns over the tax reform plan was excessive led to bargain buying," and "Jeong Cheong-rae, the leader of the Democratic Party of Korea, hinted at quickly organizing and announcing his stance on the capital gains tax on stocks, raising expectations for reform in response to investor backlash."
  

koreanbae@fnnews.com Bae Hangul Reporter