KOSPI Falls on Foreign and Institutional Selling... KOSDAQ, Turning Upward, Approaches 800 Level

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The KOSPI is showing weakness amid ongoing concerns about tightening. The rising won-dollar exchange rate is also analyzed to have affected supply and demand.

As of 11:26 a.m. on the 31st, the KOSPI index was recorded at 2443.08, down 7.85 points (0.32%) from the previous day. The index started the day at 2433.47, down 17.46 points (0.71%), but later narrowed its losses. Foreigners and institutions sold stocks worth 226.4 billion won and 129.9 billion won respectively, but individuals net bought about 358.4 billion won, preventing further decline in the index.

The KOSPI index declined following the U.S. stock market's three consecutive days of losses due to tightening concerns. 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 ended at 3,986.16, down 44.45 points (1.10%), and the tech-heavy Nasdaq index closed at 11,883.14, down 134.53 points (1.12%).

The U.S. stock market fell as Federal Reserve Chairman Jerome Powell and other Fed officials made hawkish remarks. Additionally, the U.S. Department of Labor reported that job openings in July increased by 200,000 to 11.2 million, indicating a strong labor market and raising concerns about tightening.

Seo Sang-young, head of the Media Content Division at Mirae Asset Securities, explained, "The KOSPI showed a downward trend because the U.S. stock market declined, but since the Fed officials' remarks were already known, the drop was not amplified." He added, "However, the rise in the exchange rate is having a negative impact on supply and demand."

On the same day, the won-dollar exchange rate hit a new intraday high. It opened at 1,350.0 won, up 3.3 won from the previous closing price, and rose to 1,352.3 won, surpassing the intraday high of 1,350.8 won recorded on the 29th after two trading days.

Among the top market capitalization stocks, LG Energy Solution (-1.40%), Kakao (-1.37%), NAVER (-1.05%), Hyundai Motor (-0.51%), Samsung Biologics (-0.48%), and SK Hynix (-0.11%) declined in that order. On the other hand, Samsung SDI (1.04%), LG Chem (0.49%), and Samsung Electronics (0.17%) rose. Kia remained flat.

By sector, machinery (-2.77%), electric and gas utilities (-1.44%), chemicals (-0.96%), and non-metallic minerals (-0.83%) showed weakness. Conversely, steel and metals (1.70%), medical precision instruments (1.30%), and paper and wood products (0.25%) were strong.

At the same time, the KOSDAQ index rose 2.24 points (0.28%) to 799.26 compared to the previous trading day. The index started at 792.33, down 4.69 points (0.59%), but fluctuated before turning upward. Individuals net bought about 80.4 billion won, while foreigners and institutions net sold 56.4 billion won and 26.5 billion won respectively.

Among the top market capitalization stocks, except for Ecopro (4.52%) and HLB (1.40%), most were weak. Ecopro BM fell 2.50%, recording the largest drop. This was followed by Alteogen (-2.19%), Studio Dragon (-1.45%), Kakao Games (-1.34%), L&F (-1.14%), Celltrion Pharm (-0.90%), Pearl Abyss (-0.72%), and Celltrion Healthcare (-0.56%).

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