KOSPI Hits New Intraday Low but Successfully Rebounds at the End... Holding the 2220 Level (Comprehensive)

KOSPI closes at 2223.86, up 2.92P (0.13%)
KOSDAQ closes at 698.11, up 5.74P (0.83%)

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] The domestic stock market closed higher on the 27th. The KOSPI index, which started the day with a slight rise, turned downward during the session but rebounded near the 2200 level as foreign buying increased, ultimately finishing with a late rally.

The KOSPI index closed at 2223.6, up 2.92 points (0.13%) for the day.

The index fell to 2200 during the session due to hawkish remarks from U.S. Federal Reserve (Fed) officials and concerns over a global economic recession, but institutional investors' bargain hunting at low prices in the final moments led to a rebound. Institutions net bought about 244.9 billion KRW, while foreigners sold about 248.6 billion KRW. Individual investors recorded a net sale of 16.2 billion KRW, reducing their selling volume.

The won-dollar exchange rate, which led the sharp stock drop the previous day, fell to 1421 KRW. The KOSPI index hit a new intraday low again, attracting bargain buying, and the upward trend in U.S. futures markets also fueled the low-price buying momentum.

Earlier in the day, Raphael Bostic, President of the Atlanta Federal Reserve Bank, said that the large-scale tax cuts in the UK increased the risk of a global economic recession, dampening investor sentiment. The economic forecasting model developed by investment advisory firm Ned Davis Research (NDR) showed the probability of a global recession exceeding 98%.

Lee Jin-woo, a researcher at Meritz Securities, said, "Although the won-dollar exchange rate is stabilizing, market burdens remain, so even small supply and demand changes cause declines. Panic over uncertainties related to European issues persists, and as market support levels were broken, the perception of a bottom weakened, leading to psychological contraction and larger declines."

Samsung Electronics (0.56%), which hit a 52-week low of 53,500 KRW during the day, recovered to 54,200 KRW as buying surged late in the session. Hyundai Motor (1.92%) and Kia Motors (2.27%) also showed strength. NAVER, which had been rising during the session, closed flat.

However, LG Energy Solution (-0.56%), SK Hynix (-0.61%), Samsung Biologics (-0.53%), and LG Chem (-0.35%) closed lower, while Samsung SDI and Kakao fell by 1.68% and 0.67%, respectively.

The KOSDAQ index also rose 5.74 points (0.83%) to 698.11. The index dropped to 681 during the session but rebounded due to combined buying by foreigners and institutions. Institutions bought 129 billion KRW worth, and foreigners also recorded net purchases of 44.7 billion KRW. Individual investors net sold 174.9 billion KRW.

Among the top market cap stocks on KOSDAQ, most rose except Pearl Abyss (-5.85%). Alteogen (4.48%) posted the largest gain, and secondary battery-related stocks such as EcoPro BM (3.03%), L&F (2.99%), and EcoPro (2.14%) showed strength. Celltrion Healthcare and Celltrion Pharm rose 1.27% and 0.66%, respectively, while Kakao Games (2.4%) and JYPEnt. (2.28%) also increased.

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "Due to the previous day's sharp decline and a strong dollar, investor sentiment was subdued, limiting bargain buying. Although the KOSPI hit a year-to-date low, efforts to defend the 2200 level have also expanded."

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