US Stock Market Turmoil Dampens Investor Sentiment... KOSPI Ends Slightly Lower

KOSPI Started Higher but Closed Lower
KOSDAQ Closed Higher... Relatively Strong Individual Buying Pressure

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] Due to mixed trends in the U.S. stock market, investor sentiment weakened, causing the KOSPI, which had risen early in the session, to close slightly lower. The KOSDAQ showed a firm rise supported by individual buying.

On the 26th, the KOSPI closed at 3,168.43, down 0.09% (2.89 points) from the previous trading day. Although it started higher, it turned downward and fell to 3,160.30 at 1:16 p.m.

Instability in the U.S. stock market negatively affected the domestic market. The U.S. May Consumer Confidence Index, released on the 25th (local time), came in at 117.2, below last month's 117.5 and the expected 119.5. Additionally, last week, the Biden administration lowered the infrastructure investment scale from $2.3 trillion (approximately 2,568 trillion KRW) to $1.7 trillion in negotiations with the Republican Party, but the Republicans announced they would submit a $1 trillion investment plan on the 27th.

Seosangyoung, a researcher at Mirae Asset Securities, explained, "Although the U.S. stock market ultimately fell slightly on the 25th, it gave up early gains and showed weakness. The increased uncertainty regarding infrastructure-related investments has weakened expectations for liquidity supply, which is a factor dampening investor sentiment in the domestic market."

Selling pressure from individuals and foreigners led to the index decline. On the day, individuals and foreigners sold a net 238.9 billion KRW and 29.5 billion KRW, respectively. Institutions bought a net 282 billion KRW.

Many sectors showed strength. The electric and gas industry had the largest gain at 4.48%. This was followed by machinery (2.75%), construction (1.46%), food and beverage (1.35%), and medical precision (1.22%). On the downside were steel and metals (-2.73%), chemicals (-1.00%), transportation equipment (-0.91%), pharmaceuticals (-0.79%), and manufacturing (-0.43%).

Most of the top 10 market capitalization stocks declined. LG Chem had the largest drop at 6.73%. This was followed by Samsung Biologics (-1.76%), Hyundai Motor (-1.76%), Samsung SDI (-0.93%), Kia (-0.61%), Celltrion (-0.55%), and Samsung Electronics (-0.13%). NAVER (1.40%) and Kakao (1.27%) showed strength. SK Hynix closed flat.

The KOSDAQ closed at 966.06, up 0.41% (3.99 points) from the previous day. It rose as high as 967.49 at 2:53 p.m.

Strong individual buying led to the firm rise. Individuals bought a net 59.1 billion KRW. Foreigners and institutions sold a net 1.5 billion KRW and 24.1 billion KRW, respectively.

Almost all sectors rose. Broadcasting services had the largest gain at 2.83%, followed by information devices (2.80%), telecommunications and broadcasting services (2.26%), publishing and media reproduction (1.90%), and construction (1.63%). On the downside were transportation equipment and parts (-1.07%), distribution (-0.33%), textiles and apparel (-0.31%), semiconductors (-0.18%), and other services (-0.12%).

Many of the top 10 market capitalization stocks showed weakness. HL Biotech had the largest decline at 2.09%, followed by Celltrion Pharm (-1.47%), Alteogen (-1.26%), Celltrion Healthcare (-0.93%), and Seegene (-0.29%). CJ ENM (4.23%), Kakao Games (2.54%), EcoPro BM (0.75%), and SK Materials (0.09%) rose. Pearl Abyss closed flat.

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