KOSPI and KOSDAQ Start Lower... Early Surge in Exchange Rate, Foreigners Switch to 'Sell'

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Yoon-joo] On the 2nd, the stock market opened lower for both KOSPI and KOSDAQ, influenced by the sharp decline in the US stock market following earnings reports from Apple and Amazon on the previous trading day. The exchange rate, which affects foreign investor flows, surged by more than 8 won in the early session, increasing caution ahead of the US Federal Open Market Committee (FOMC) regular meeting.

As of 9:10 AM, KOSPI was at 2,673.47, down 21.58 points (0.80%) from the previous close. Foreigners and individuals were net sellers of 11.4 billion KRW and 20.8 billion KRW respectively, contributing to the index decline. Institutions were net buyers of 32 billion KRW. Shortly after the market opened, foreigners initially joined institutions in buying but soon switched to selling.

Among the top market capitalization stocks, tech stocks showed the largest declines. Naver was trading at 281,500 KRW, down 1.75% from the previous trading day, and Kakao was down 1.22% at 88,800 KRW. Other weak performers included Samsung Electronics (-0.89%), LG Energy Solution (-0.96%), SK Hynix (-0.89%), Samsung Biologics (-0.72%), and Samsung SDI (-0.33%).

On the other hand, the automobile and chemical sectors showed upward trends. Hyundai Motor was trading at 187,000 KRW, up 0.54% from the previous day, and Kia was up 0.95% at 84,600 KRW. LG Chem also rose 0.77% to 523,000 KRW.

[Image source=Yonhap News]

By industry, insurance (-1.19%), service (-1.25%), electrical and electronics (-1.18%), transportation and warehousing (-0.95%), and finance (-0.92%) sectors were declining.

However, medical precision (+0.61%), textiles and apparel (+0.37%), food and beverage (+0.34%), paper and wood (+0.32%), and chemicals (+0.03%) were trending upward. The volatility index stood at 20.95, an increase of 10.68% compared to the previous trading day.

KOSDAQ was at 893.03, down 11.72 points (1.30%) from the previous day. Unlike KOSPI, it started the session at 894.03, down 10.72 points (1.18%), and widened the decline. Individuals were net buyers with 60.8 billion KRW, while foreigners and institutions showed net selling intentions of 19.1 billion KRW and 40 billion KRW respectively.

Two stocks hit the daily upper limit early in the session: Daejoo Industrial (4,300 KRW) and SNT Energy (23,750 KRW).

[Image source=Yonhap News]

The USD/KRW exchange rate opened at 1,264.0, up 8.1 won from the previous close.

Kim Dae-jun, a researcher at Korea Investment & Securities, said, "With the USD/KRW exchange rate exceeding 1,250 won, it is necessary to monitor whether the unfavorable rise in the exchange rate for stock prices will continue. From the perspective of exchange rate sensitivity, hardware, telecommunications, and food and beverage sectors are relatively advantageous. Also, with the USD/JPY exchange rate surpassing 130 yen, differentiation among export stocks is expected to progress."

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