Despite US Infrastructure Bill Passing Senate... KOSPI Shaken by Semiconductor Sector

Infrastructure Investment Bill's Passage in the House Uncertain
KOSDAQ Shows Uptrend... Celltrion Pharm 13.12%↑

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The $1 trillion infrastructure investment plan promoted by U.S. President Joe Biden has passed the Senate hurdle, but the KOSPI is falling in early trading. Semiconductor-related stocks such as Samsung Electronics and SK Hynix showed weakness due to concerns over sluggish performance.

At 11:12 a.m. on the 11th, the KOSPI recorded 3,239.57, down 0.11% (3.62 points) from the previous trading day. Earlier at 10:07 a.m., the KOSPI had dropped to 3,226.75.

Although President Biden's infrastructure investment plan passed the Senate, it does not seem to be a positive factor for the domestic stock market. On the 10th (local time), the U.S. Senate voted on the $1 trillion infrastructure budget bill, passing it with 69 votes in favor and 30 against, but the possibility of it passing the House of Representatives remains uncertain.

House Speaker Nancy Pelosi stated that the infrastructure budget bill would only be put to a vote in the House if a $3.5 trillion social spending bill is also passed. However, some Democratic lawmakers, including Joe Manchin and Kyrsten Sinema, have expressed reservations about the social spending bill due to concerns over increased debt and tax hikes. Additionally, the House is currently in recess, so the vote can only be held on September 21.

Seo Sang-young, a researcher at Mirae Asset Securities, explained, "The U.S. stock market showed strength on news of the infrastructure budget bill passing, but since it is still uncertain whether the related bill will pass the House, it is a burden on the domestic stock market," adding, "Rather than the overall index, there will be differentiation by sector depending on sector-specific issues."

Foreigners and institutions are selling heavily. Foreigners and institutions sold a net 561 billion KRW and 76.1 billion KRW, respectively. Individuals bought a net 632.4 billion KRW.

Sector indices showed mixed results. Banks had the largest gain at 5.78%, followed by medical precision (3.30%), pharmaceuticals (1.90%), steel and metals (1.40%), and finance (1.32%). Meanwhile, electric and electronics (-1.56%), electric and gas utilities (-0.95%), food and beverage (-0.91%), services (-0.73%), and distribution (-0.59%) declined.

Most of the top 10 market capitalization stocks fell. SK Hynix had the largest drop at 4.00%. Samsung Electronics also fell 1.25%, with semiconductor-related stocks showing weakness. This is interpreted as a decline in stock prices due to concerns over a downturn in the semiconductor industry, including expected DRAM price drops in the fourth quarter. Kakao (-0.68%), NAVER (-0.34%), Samsung SDI (-0.25%), and LG Chem (-0.23%) also declined. On the other hand, KakaoBank (7.00%), Celltrion (4.44%), and Samsung Biologics (2.43%) rose. Hyundai Motor remained flat.

At the same time, the KOSDAQ recorded 1,056.51, up 0.42% (4.44 points) from the previous trading day. The KOSDAQ started lower but quickly turned upward.

Individuals led the rise, buying a net 74.5 billion KRW. Foreigners and institutions sold a net 6.4 billion KRW and 54.5 billion KRW, respectively.

Many sectors showed weakness. Broadcasting services had the largest decline at 1.51%, followed by broadcasting services (-1.49%), telecommunications and broadcasting services (-1.20%), machinery and equipment (-1.15%), general electric and electronics (-0.90%), and semiconductors (-0.87%). Meanwhile, distribution (2.95%), internet (2.18%), pharmaceuticals (1.97%), and medical and precision instruments (1.64%) rose.

The top 10 market capitalization stocks showed mixed performance. Celltrion Pharm's rise was the largest at 13.12%, followed by SK Materials (6.56%), Celltrion Healthcare (6.17%), L&F (3.63%), and Seegene (1.40%). Kakao Games (-2.51%), EcoPro BM (-1.12%), Alteogen (-1.06%), HLB (-0.56%), and Pearl Abyss (-0.14%) declined.

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