KOSPI Turns Down Amid Ceiling-Breaking Exchange Rate... Briefly Falls Below 2400 During Session

[Image source=Yonhap News]

[Asia Economy Reporter Myung-Hwan Lee] The KOSPI turned downward in the afternoon session on the 5th, slipping to the low 2400s. The won-dollar exchange rate surpassed 1,370 won for the first time in over 13 years, seemingly negatively impacting foreign investors' sentiment. The KOSDAQ index also widened its losses, threatening the 770 level.

As of 1:45 p.m. that day, the KOSPI stood at 2,403.35, down 0.25% (6.06 points) from the previous trading day. The KOSPI opened at 2,410.07, up 0.03% (0.66 points) from the previous day, and briefly extended its gains while moving in a narrow positive range. However, as noon approached, the upward momentum diminished, and the index turned downward. At 1:22 p.m., the KOSPI briefly broke below the 2,400 mark, falling 9.77 points to 2,399.64 compared to the previous day.

Foreign investors, who had been net buyers in the morning session on the Korea Exchange, switched to net sellers, offloading stocks worth 20.7 billion won. Individual investors also sold stocks worth 36 billion won. Conversely, institutional investors, who had been net sellers in the morning, were the sole net buyers, purchasing stocks worth 56.9 billion won.

The shift to net selling by foreign investors is presumed to be influenced by the high exchange rate. At 11:13 a.m. in the Seoul foreign exchange market, the won-dollar exchange rate rose to 1,370.1 won. The last time the won-dollar exchange rate surpassed the 1,370 won level was on April 1, 2009, during the financial crisis, when it reached 1,392 won (high price basis), marking a span of 13 years and 5 months.

Looking at the top market capitalization stocks on the Korea Exchange, Samsung Electronics traded at 57,000 won, down 0.87% (500 won) from the previous day. Samsung Biologics (-3.22%), Samsung SDI (-1.74%), and Samsung Electronics Preferred (-1.32%) also experienced significant declines. Hyundai Motor traded at 200,000 won, up 1.78% (3,500 won) from the previous day.

At the same time, the KOSDAQ index stood at 773.29, down 1.60% (12.59 points) from the previous day. The KOSDAQ opened at 784.83, down 0.13% (1.05 points) from the previous day, and deepened its losses in the afternoon session.

In the KOSDAQ market, individual investors were the sole net buyers, purchasing stocks worth 100.7 billion won. Meanwhile, foreign and institutional investors sold stocks worth 57 billion won and 18.7 billion won, respectively.

Among the top market capitalization stocks on the KOSDAQ, HLB (-3.85%), EcoPro BM (-2.73%), and L&F (-2.51%) saw large declines. Only Pearl Abyss (0.74%) and Studio Dragon (-0.41%) showed slight gains.

The downward turn in the indices appears to have been influenced by the rise in the won-dollar exchange rate. Kyung-Min Lee, a researcher at Daishin Securities, commented, "Although the KOSPI attempted a rebound in the morning with a 0.64% gain due to a wave of counterbuying, it was hampered by the exchange rate variable and turned downward again. Large semiconductor stocks such as Samsung Electronics and SK Hynix, which are among the top market capitalization stocks, expanded their losses in the afternoon, leading the KOSPI's decline."

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