Still Unstable Market 'Mixed KOSPI'... Repeated Shifts Between Rise and Fall Indicate 'Weakness'

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 22nd, the domestic stock market started with a slight rise but showed a mixed trend as it quickly turned downward and then rose again.

On this day, the KOSPI index opened at 3,040.01, up 0.48 points from the previous trading day, and the KOSDAQ index started the session at 953.04, up 0.93 points. As of 9:12 AM, KOSPI is down 0.08% at 3,037.16, and KOSDAQ is down 0.11% at 951.11.

Only individual investors are net buyers. Individuals are net buying about 131.2 billion KRW in the KOSPI market and about 70.5 billion KRW in the KOSDAQ market. Foreigners and institutions are net sellers. Foreigners are selling 99 billion KRW in the KOSPI market and 53.7 billion KRW in the KOSDAQ market. Institutions are net selling about 43.1 billion KRW and 17.8 billion KRW in the KOSPI and KOSDAQ markets, respectively.

By sector in KOSPI, the machinery sector (+1.83%) stands out with a strong start. Retail (+0.65%) and steel & metals (+0.59%) sectors are also showing upward trends. On the other hand, paper & wood (-0.23%) and transportation & warehousing (-0.18%) sectors are declining. Additionally, construction (+0.54%), chemicals (+0.51%), and services (+0.20%) sectors are rising together, while medical precision (-0.01%) is falling.

In KOSDAQ sectors, telecommunications services (+0.55%), telecommunications equipment (+0.33%), and publishing & media reproduction (+0.29%) are showing strength, whereas broadcasting services (-0.35%), software (-0.06%), and computer services (-0.06%) are declining.

Seo Sang-young, a researcher at Kiwoom Securities, explained, "We need to observe the impact of the volatility of the Turkish lira, which raised interest rates last week. In particular, it is important to watch whether this impact will lead to increased volatility in emerging market currencies."

Meanwhile, on the 19th (local time), the Dow Jones Industrial Average in the U.S. New York stock market closed at 32,627.97, down 0.71% from the previous trading day. The Standard & Poor's (S&P) 500 index closed down 0.06% at 3,913.10. In contrast, the tech-heavy Nasdaq index rose 0.76% to 13,215.24.

This is due to the influence of the U.S. Federal Reserve. The Fed announced on this day that it will not extend the supplementary leverage ratio (SLR) exemption for major large banks, which was scheduled to end at the end of this month, and will let it expire as planned. Initially, the market widely expected the Fed to extend the SLR exemption this time, but it did not. If large banks sell government bonds held to meet the SLR standards, interest rates could surge again.

This content was produced with the assistance of AI translation services.