KOSPI Starts Higher... KakaoPay Plummets Amid Block Deal Rumors

On the 8th, the KOSPI index opened at 2,633.53, up 7.19 points (0.27%), as dealers were busy working in the Hana Bank dealing room in Euljiro, Seoul. The won-dollar exchange rate started at 1,255.0 won, down 2.7 won. Photo by Moon Honam munonam@

[Asia Economy Reporter Junho Hwang] On the 8th, the KOSPI started higher. As U.S. Treasury yields fell and investor sentiment toward risk assets revived, the market showed signs of recovering from the previous day's decline.

On this day, the KOSPI opened at 2,633.53, up 7.19 points (0.27%). Eleven minutes later, it was recorded at 2,631.14. While foreign investors and institutions jointly sold net amounts of 51.3 billion KRW and 40.1 billion KRW respectively, individual investors showed a net buying intention of 88 billion KRW.

Among all listed stocks, 455 stocks rose, and most of the market capitalization stocks showed an upward trend. Samsung Electronics, the perennial market leader, fell more than 1% the previous day but rose 0.15% to 65,600 KRW on this day. SK Hynix, another semiconductor stock, also rose 1.92% to 432,500 KRW. On the other hand, NAVER (-0.36%) and Kakao (-0.73%) showed a downward trend following news of a block deal involving KakaoPay.

KakaoPay is trading at 86,400 KRW, down 18.49%, following news that its second-largest shareholder, Alipay, engaged in an off-hours block deal. According to the investment banking (IB) industry, on the 7th, Alipay, the second-largest shareholder of KakaoPay, began a demand forecast for an institutional block deal involving 5 million shares of KakaoPay. The discount rate was proposed at 8.5% to 11.8% compared to the previous day's closing price (106,000 KRW), and JP Morgan was reported as the lead manager for the sale. If Alipay succeeds in this block deal, it will secure liquidity amounting to 485 billion KRW. KakaoPay dismissed concerns about Alipay's overhang when it went public last November, but less than a year later, Alipay has proceeded with a block deal.

By sector, electricity and gas, machinery, and medical precision sectors showed notable gains. However, the increase was less than 1%.

On the 8th, the KOSPI index opened at 2,633.53, up 7.19 points (0.27%), as dealers were busy working in the Hana Bank dealing room in Euljiro, Seoul. The won-dollar exchange rate started at 1,255.0 won, down 2.7 won. Photo by Moon Honam munonam@

The KOSDAQ also started higher, rising 4.22 points (0.48%) to 878.00. While individuals showed a net buying of 24.7 billion KRW, foreigners and institutions showed net selling intentions of 20.5 billion KRW and 1.4 billion KRW respectively. Among all stocks, 771 stocks showed an upward trend, and most of the top market capitalization stocks also showed gains in the 1% range. These include EcoPro BM (1.23%), Celltrion Healthcare (1.50%), L&F (1.12%), and Celltrion Pharm (1.90%).

Han Ji-young, a researcher at Kiwoom Securities, said, "Although negative factors such as inflation and concerns about economic growth rate decline are dominant, the fact that the U.S. stock market rebounded the previous day suggests that investors have developed some resilience." She added, "Although major countries' stock markets, including Korea and the U.S., have shown sluggish price trends since June, it is necessary to view the fact that the annual lows have not been broken in the same context."

However, she noted, "For the index's upper range to open meaningfully, visible signs that inflation is being controlled must appear. Since it is difficult to expect this soon, the stock market is expected to show a box range trend (estimated to be near the lower end currently) while gradually raising the bottom for the time being."

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