KOSPI Falls Amid Foreign and Institutional Selling on 'Tightening Concerns'... KOSDAQ Turns Upward

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Due to ongoing concerns about tightening following the Jackson Hole meeting, the KOSPI is showing a downward trend on the 31st. The USD/KRW exchange rate hitting a new high is also affecting supply and demand.

As of 9:53 a.m. that day, the KOSPI index was recorded at 2,437.24, down 13.69 points (0.56%) from the previous day. The index opened at 2,433.47, down 17.46 points (0.71%), but the decline narrowed afterward. Foreigners and institutions sold approximately 194.1 billion KRW and 101.7 billion KRW respectively, while individuals alone bought about 294 billion KRW worth.

The index is falling due to the impact of global stock market weakness, including the U.S. stock market falling for three consecutive trading days. On the 30th (local time), the Dow Jones Industrial Average closed at 31,790.87, down 308.12 points (0.96%) from the previous session. The large-cap focused S&P 500 index closed at 3,986.16, down 44.45 points (1.10%), and the tech-heavy Nasdaq index ended at 11,883.14, down 134.53 points (1.12%).

Following Federal Reserve Chair Jerome Powell, hawkish remarks from Fed officials also led to a decline in the U.S. stock market. Additionally, the U.S. Department of Labor reported that the number of job openings in U.S. companies in July rose by 200,000 to 11.2 million, indicating a strong labor market, which heightened concerns about tightening.

Na Jung-hwan, a researcher at Cape Investment & Securities, said, "After Chair Powell’s remarks on tightening, investment sentiment toward stocks has weakened, so it is important to be aware that volatility could increase."

Furthermore, the USD/KRW exchange rate started higher and hit a new high, affecting supply and demand. The exchange rate opened at 1,350.0 KRW, up 3.3 KRW from the previous closing price, and rose to 1,352.3 KRW, surpassing the intraday high of 1,350.8 KRW recorded on the 29th after two trading days.

Among the top market capitalization stocks, LG Energy Solution recorded the largest drop, falling 1.50%. Following were Naver (-1.26%), Kakao (-1.23%), LG Chem (-0.82%), Samsung Biologics (-0.48%), and Samsung Electronics (-0.17%). Samsung SDI (0.52%), SK Hynix (0.21%), and Kia (0.12%) showed gains. Hyundai Motor remained flat.

By sector, machinery (-2.75%), non-metallic minerals (-1.86%), electric and gas utilities (-1.60%), and chemicals (-1.53%) were weak. Meanwhile, medical precision (1.64%), steel and metals (0.52%), and transportation and warehousing (0.25%) were strong.

At the same time, the KOSDAQ index rose 0.55 points (0.07%) from the previous trading day to 797.57. It opened at 792.33, down 4.69 points (0.59%), but then turned upward. Individuals bought about 83.2 billion KRW, leading the index rise, while foreigners and institutions sold about 54.9 billion KRW and 27.6 billion KRW respectively.

Among the top market capitalization stocks, EcoPro BM (-2.50%), Alteogen (-1.72%), Studio Dragon (-1.45%), L&F (-1.01%), Pearl Abyss (-0.89%), Celltrion Pharm (-0.77%), Kakao Games (-0.57%), and Celltrion Healthcare (-0.42%) fell. EcoPro and HLB rose 4.06% and 0.22%, respectively.

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