[Market Close] KOSPI Hits 2200 Intraday for First Time in 1 Year 8 Months... Foreigners' 'Sell Korea'

Micron Lowers Guidance... Semiconductor Stocks Weak
June Trade Balance Deficit... Reversal Due to Won Weakness
Foreigners Increase 'Sell'... Institutions Turn to 'Sell'
Late Session Breaks 2300... New Year Low
Intraday Low of 2291.49 Recorded
Samsung Electronics Hits New Low... Closes at 65,000 Won

On the 13th, as the KOSPI index started in a downward trend and hit a new intraday low, dealers were working in the Hana Bank dealing room in Euljiro, Seoul. On that day, the KOSPI opened at 2,550.21, down 45.66 points (1.76%). The won-dollar exchange rate started at 1,280.0 won, up 11.1 won. Photo by Moon Honam munonam@

[Asia Economy Reporter Hwang Yoon-joo] On the first trading day of the second half of the year, the KOSPI fell to the 2200 level for the first time in 1 year and 8 months on the 1st. It set a new low twice this year. Although the KOSPI and KOSDAQ indices started higher, they closed lower as selling pressure from foreigners and institutions intensified.

On that day, the KOSPI closed at 2305.42, down 1.17% (27.22 points) from the previous day. The KOSPI opened at 2342.92, up 0.44% (10.28 points), but turned lower in the morning and the decline widened.

During the session, it dropped as low as 2291.49, down 1.76% (41.15 points). This index broke the yearly low of 2342.81 recorded on June 22 after 7 trading days.

Combined selling by foreigners and institutions weighed on the index. Foreigners and institutions net sold 343.7 billion KRW and 5.8 billion KRW, respectively. Individuals net bought 331.4 billion KRW.

The selling by foreigners was due to weakened investor sentiment. Investment banks (IBs) downgraded their forecasts for the US Q2 growth rate. This sparked concerns about an economic recession. Morgan Stanley lowered its US Q2 growth forecast from 2.0% to 0.3%, a 1.7 percentage point cut. Amherst Pierpont Securities also cut its forecast from 3.2% to 2.2%, a 1 percentage point decrease.

[Image source=Yonhap News]

Among the top 10 market capitalization stocks, only Kia (+0.78%) rose. Samsung Electronics (-1.75%) extended its losses and hit a new low. SK Hynix (-4.18%), LG Energy Solution(-4.04%), Kakao (-3.86%), and Samsung SDI (-3.76%) followed in decline.

Kim Dae-jun, a researcher at Korea Investment & Securities, analyzed, "Investor sentiment weakened due to concerns about a US recession and the possibility of economic retaliation from China, causing the index to fall below 2300 during the session. Micron's downward guidance also negatively affected domestic semiconductor investment sentiment, leading Samsung Electronics to record a new low."

He added, "After the NATO summit, Korea-China relations have been reexamined, raising concerns about the reemergence of economic retaliation as in the past. The unfavorable market environment continued as low growth and high inflation were compounded by uncertainties regarding China, causing selling to trigger more selling."

Sector declines also deepened. Textile and apparel (-3.24%), electrical and electronics (-2.22%), services (-1.53%), medical precision (-1.51%), and manufacturing (-1.48%) fell in order. On the other hand, food and beverage (+1.41%), telecommunications (+1.38%), insurance (+1.37%), and construction (+0.84%) rose.

Lee Jae-man, a researcher at Hana Securities, explained, "The KOSPI closed lower, hitting a yearly low due to ongoing tightening concerns. Telecommunications sectors such as LG Uplus (+2.35%), SK Telecom (+1.54%), and KT (+0.64%) showed strength as volatility hedge sectors amid the market decline."

The KOSDAQ index stood at 729.48, down 2.14% (15.96 points) from the previous day. The KOSDAQ opened at 748.20, up 0.37% (2.76 points), but turned lower in the morning.

Foreigners and institutions net sold 98 billion KRW and 68.4 billion KRW, respectively, while individuals net bought 206.4 billion KRW.

Among the top 10 market capitalization stocks, only Celltrion Healthcare (+1.31%), Studio Dragon (+0.43%), and CJ ENM (+0.11%) closed higher. L&F (-5.48%) and EcoPro BM (-4.32%) also closed weak today. Alteogen (-5.56%) had the largest decline.

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