Foreigners' 'Saja' Switch Anchors KOSPI at 2210 Level... 'Frozen' Kakao Down 5.93%

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The domestic stock market closed higher on the 17th as individuals and foreigners showed net buying dominance. The KOSPI index, which started the day lower, widened its intraday losses but turned to an upward trend as foreigners switched to net buying.

On this day, the KOSPI index closed at 2,219.71, up 7.16 points (0.32%) from the previous trading day, marking two consecutive days of gains. The index opened at 2,187.17, down 25.38 points (1.15%) from the previous day, and fell to 2,177.66, but recovered to the 2,220 level due to foreigners turning to net buying. Foreigners recorded net buying for 11 consecutive trading days. Individuals and foreigners purchased approximately 53 billion KRW and 267.7 billion KRW worth of stocks respectively, while institutions net sold stocks worth 317.8 billion KRW.

Among the top market capitalization stocks, Samsung Biologics rose the most, up 2.98%. It was followed by LG Energy Solution (1.76%), Naver (0.91%), Samsung Electronics (0.53%), LG Chem (0.35%), and Samsung SDI (0.33%). Meanwhile, Celltrion (-2.59%), Kia (-0.43%), and SK Hynix (-0.31%) declined. Hyundai Motor remained flat. Due to the impact of a data center fire, Kakao fell more than 9% during the day but narrowed its losses to close down 5.93%. Kakao Bank and Kakao Pay fell 5.14% and 4.16%, respectively.

By sector, non-metallic minerals (4.33%), paper & wood (1.53%), insurance (1.15%), pharmaceuticals (1.11%), electrical & electronics (0.75%), and manufacturing (0.66%) rose. Conversely, construction (-2.78%), services (-1.23%), and electricity & gas (-0.34%) sectors declined.

The KOSPI index was influenced by the decline in the U.S. stock market on the 14th (local time) due to rising expected inflation. According to the University of Michigan, the median expected inflation for the next year rose to 5.1% from 4.7% the previous month. The 5-year expected inflation also increased from 2.7% to 2.9%. This spread inflation fears and raised concerns about tightening by the Federal Reserve (Fed).

Lee Kyung-min, a researcher at Daishin Securities, said, "The data center fire, which caused Kakao to plunge about 9%, also contributed to the market decline," adding, "During the day, the downward trend in U.S. short- and long-term bond yields and the dollar index eased financial market volatility." The won-dollar exchange rate closed at 1,435.3 KRW, up 6.8 KRW from the previous trading day's close. It opened at 1,440.9 KRW, up 12.4 KRW from the previous close, rose to an intraday high of 1,441.4 KRW, and even threatened the intraday peak of 1,442.2 KRW but gave back some gains.

Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "The inflow of foreigners' bargain hunting and the rebound of top market capitalization stocks reduced losses and turned the market upward," adding, "Secondary battery stocks also showed strength."

The KOSDAQ index also closed higher, finishing at 682.00, up 3.76 points (0.55%) from the previous trading day. It started trading at 667.61, down 10.63 points (1.57%) but closed higher as buying by individuals and foreigners continued. Individuals and foreigners net bought approximately 40.8 billion KRW and 17.6 billion KRW respectively, while institutions net sold 50.9 billion KRW.

Among the top market capitalization stocks, EcoPro rose more than 9%, followed by secondary battery stocks EcoPro BM (4.10%) and L&F (4.08%). JYP Entertainment also rose 0.70%. On the other hand, Celltrion Healthcare fell more than 4%, showing the largest decline. It was followed by HLB (-3.47%), Rino Industrial (-2.44%), Kakao affiliate Kakao Games (-2.22%), Pearl Abyss (-1.72%), and Celltrion Pharm (-0.94%).

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