KOSPI Sideways... "Taking a Breather Ahead of Earnings Season"

KOSDAQ Falls by Over 1%

On the 4th, employees are working in the dealing room at the Myeongdong Hana Bank headquarters in Jung-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The KOSPI opened slightly higher and is showing a sideways movement without significant fluctuations. Analysts suggest that a cautious stance has deepened ahead of the earnings announcements for the fourth quarter of last year by various companies.

As of 10:53 a.m. on the 4th, the KOSPI stood at 2,982.19, down 0.22% from the previous day. After opening slightly higher at 2,991.97, it shifted to a slight decline, but the drop has not widened.

A somewhat cautious atmosphere is emerging ahead of the fourth-quarter earnings announcements for last year. Jinwoo Lee, head of investment strategy at Meritz Securities, explained, "Recently, the U.S. stock market has also shown an upward trend, and the semiconductor industry outlook continues to improve. While some individual stocks are experiencing adjustments, large-cap stocks are basically holding the center, resulting in a sideways trend. Since we are about to enter the period for last year's fourth-quarter earnings announcements, we need to keep an eye on this. In the past, the market was largely indifferent to fourth-quarter earnings, but this year, expectations seem to be growing somewhat."

By investor type, foreigners and individuals were net buyers of 33.7 billion KRW and 361 billion KRW, respectively. Institutions were net sellers of 398.2 billion KRW.

By sector, many sectors declined. Banks (-2.12%), services (-1.83%), pharmaceuticals (-1.67%), and electricity and gas (-1.47%) saw the largest drops. On the other hand, medical precision (2.61%), chemicals (1.36%), and steel & metals (1.11%) rose.

However, the KOSDAQ showed a somewhat sluggish performance. At the same time, it recorded 1,025.95, down 1.14% from the previous day. It also opened slightly higher at 1,041.07 but shifted to a downward trend around 9:30 a.m.

Individuals alone were net buyers of 372.5 billion KRW, while foreigners and institutions sold 242.5 billion KRW and 121.3 billion KRW, respectively.

Most sectors declined. Digital content had the largest drop at -3.76%, followed by IT S/W & SVC (-2.36%), entertainment & culture (-2.11%), and semiconductors (-1.63%). Non-metallic minerals (2.85%), telecommunications services (0.92%), and construction (0.75%) rose.

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