Anxious US Stock Market... Domestic Market Enters Wait-and-See Mode

KOSPI Started Higher but Turned Lower
US May Consumer Confidence Index Falls Short of Market Expectations

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] While the U.S. stock market declined due to weak housing and consumer indicators, the domestic stock market is showing a wait-and-see stance. Individuals are net sellers of the KOSPI, whereas institutions are buying, resulting in a slightly weak trend.

As of 11:03 a.m. on the 26th, the KOSPI recorded 3,167.90, down 0.11% (3.42 points) from the previous trading day. Although it started higher and rose to 3,183.97 at 9:47 a.m., it later turned downward.

Due to weak U.S. economic indicators, the market entered a wait-and-see mode. Han Ji-young, a researcher at Kiwoom Securities, analyzed, "On the 25th (local time), the U.S. stock market still harbored inflation concerns, with key real and sentiment indicators such as new home sales and consumer confidence index showing weakness. The gap between the market and the Federal Reserve's inflation outlook and judgment has not narrowed, causing short-term market direction to be lost."

In fact, the U.S. consumer confidence index for May recorded 117.2, falling below last month's 117.5 and the expected 119.5. The median price of new home sales rose to $372,400, up from $334,200 (about 374.57 million KRW) last month. The Case-Shiller home price index surged 13.3% year-over-year.

Individual selling pressure led to the index decline. On this day, individuals were net sellers of 275.2 billion KRW. Foreigners and institutions were net buyers of 23.2 billion KRW and 240.3 billion KRW, respectively.

The sector outlook was mixed. The electric and gas utilities sector had the largest gain at 3.89%, followed by machinery (2.62%), food and beverage (1.14%), telecommunications (0.98%), and services (0.82%). Sectors such as steel and metals (-2.95%), textiles and apparel (-1.53%), banking (-0.48%), pharmaceuticals (-0.42%), and chemicals (-0.35%) showed weakness.

Many of the top 10 market capitalization stocks declined. LG Chem had the largest drop at -4.15%, followed by Samsung Biologics (-0.94%), Celltrion (-0.55%), Hyundai Motor (-0.44%), and Samsung SDI (-0.31%). NAVER (2.09%) and Kakao (0.42%) rose. Samsung Electronics, SK Hynix, and Kia remained flat.

At the same time, the KOSDAQ rose 0.28% (2.70 points) to 964.77, having climbed to 967.47 at 9:55 a.m.

KOSDAQ saw strong buying from individuals, who purchased 100.9 billion KRW. Foreigners and institutions were net sellers of 23.1 billion KRW and 47.8 billion KRW, respectively.

Most sectors rose. Broadcasting services led with a 2.77% increase, followed by telecommunications and broadcasting services (2.11%), finance (2.08%), construction (2.03%), and publishing and media replication (1.89%). Sectors such as transportation equipment and parts (-0.75%), textiles and apparel (-0.67%), distribution (-0.31%), internet (-0.24%), and telecommunications services (-0.13%) declined.

Many of the top 10 market capitalization stocks showed strength. CJ ENM led with a 3.84% rise, followed by Kakao Games (2.15%), EcoPro BM (1.49%), SK Materials (0.50%), Seegene (0.43%), and Pearl Abyss (0.34%). HL Biotech (-1.49%), Alteogen (-1.26%), Celltrion Pharm (-1.17%), and Celltrion Healthcare (-0.93%) declined.

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