'Absence of Upward Momentum' Blocks Market Ceiling... KOSPI Stagnates

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 20th, the domestic stock market closed lower. Although it attempted to turn upward during the session, the lack of 'upward momentum' led to a continued sluggish trend. The decline in stock prices was limited as the negative factors were already priced in, but with no positive catalysts, the 'ceiling' was blocked, ending slightly down.

On the day, the KOSPI closed at 2718.69, down 0.20 points (-0.01%) from the previous session, and the KOSDAQ closed at 928.93, down 2.63 points (-0.28%). During the session, the KOSPI tried to turn upward by rising above the 2720 level but fell back by the close. The KOSPI fluctuated around the 930 level throughout the session.

In the KOSPI market, individual investors net bought 75 billion KRW, and foreigners also switched to net buying, purchasing 94.4 billion KRW. Conversely, institutions led the decline by net selling 161 billion KRW.

Among the top market capitalization stocks, Kia (2.56%), NAVER (1.12%), and Hyundai Motor (1.10%) rose. Samsung Biologics (-2.42%), KakaoBank (-0.99%), and Samsung SDI (-0.49%) fell. SK Hynix and Kakao remained flat. By sector, the number of declining sectors was greater. The construction industry recorded the largest drop, falling 1.6%, followed by non-metallic minerals (1.5%), pharmaceuticals (1.42%), electric and gas utilities (1.24%), securities (0.91%), textiles and apparel (0.69%), banks (0.33%), transportation and warehousing (0.29%), insurance (0.26%), services (0.17%), and distribution (0.12%), all of which declined.

Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "The U.S. stock market continued its upward trend despite global growth slowdown and a sharp rise in government bond yields, leading the domestic market to digest concerns over rising interest rates and show a mixed sideways trend." He added, "By sector, the food and beverage industry showed strength due to expected price increases in snacks and ice cream caused by soaring raw material prices."

Lee Kyung-min, a researcher at Daishin Securities, analyzed, "Negative factors have already been largely priced into the financial markets, limiting their impact. However, with no upward momentum, rather than a clear rise, an individual stock market unfolded."

In the KOSDAQ market, individual investors net bought 165.9 billion KRW, while foreigners and institutions net sold 102.3 billion KRW and 29.6 billion KRW, respectively.

Among the top market capitalization stocks, Cheonbo rose 0.25%, while Pearl Abyss (-5.47%), HLB (-1.76%), and Kakao Games (-1.67%) declined. By sector, most showed a downward trend. Digital content, entertainment culture, and IT software sectors fell by 1-2%. This was interpreted as influenced by the weakness of Netflix in the New York stock market. Netflix, which has 221.6 million subscribers worldwide, lost 200,000 subscribers in the first quarter alone. This is the first time Netflix's subscriber count has decreased since 2011.

Meanwhile, in the Seoul foreign exchange market, the won-dollar exchange rate closed at 1236.1 won, down 0.8 won from the previous day.

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