Concerns Over Economic Slowdown in China and Gyeonggi... KOSPI and KOSDAQ Show Weakened Upward Momentum

China Delays Economic Data Release
Foreigners Sell Both Spot and Futures

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Yoon-joo] On the morning of the 18th, the KOSPI and KOSDAQ showed signs of losing upward momentum. China postponed the release of economic indicators, increasing concerns about the slowdown in the Chinese economy. As foreign investors expanded their selling in the futures and spot markets, the gains of the two major indices fell below 1%.

As of 11:45 a.m. that day, the KOSPI was trading at 2,223.57, up 0.17% from the previous day. It had opened higher at 2,249.15, up 1.33%, but the gains narrowed.

Foreign investors are restraining the index's rise by net selling 152.3 billion KRW, an increase from the 91.7 billion KRW selling at the market open. In the futures market, foreign investors are selling 438.3 billion KRW. Although individuals and institutions are net buying 71.6 billion KRW and 73.0 billion KRW respectively, it is insufficient to drive the index upward.

The top 10 stocks by market capitalization shifted to a downward trend, unlike in the morning. LG Energy Solution is down 1.63%, Kia down 1.46%, and Samsung Electronics down 1.24%. LG Chem continues to rise, up 3.13% since the morning. Naver is up 2.40%, Celltrion 1.77%, and Samsung Biologics 1.20%.

As of 11:51 a.m., the KOSDAQ was at 687.24, up 0.76% from the previous day. The KOSDAQ opened at 692.39, up 1.52%, and rose during the session to 697.37 (+2.25%).

Foreign and institutional selling expanded on the KOSDAQ. Foreigners and institutions are net selling 73.5 billion KRW and 32.5 billion KRW respectively. Individuals alone are net buying 98.3 billion KRW.

The top 10 stocks by market capitalization all rose immediately after the market opened but nearly half turned to declines. Ecopro BM (-5.77%) had the largest decline rate. Following were Ecopro -4.15%, L&F -1.08%, and Rino Industrial -0.64%. Cheonbo 3.04% and Kakao Games 2.81% showed notable gains.

Shinhan Investment Corp.'s Research Center domestic stock team analyzed, "The KOSPI started higher due to stability in the UK financial market and strong U.S. corporate earnings, but the momentum weakened due to the delay in China's real economy data release." They added, "Concerns about the Chinese economy seem to be limiting the recovery of investor sentiment." Although foreign investors were net buyers early in the session, they turned to net selling in both futures and spot markets around 10 a.m. due to the delay in China's real economy data release.

They continued, "The KOSDAQ showed a strong rebound mainly in growth stocks due to the previous day's surge in U.S. tech stocks and a drop in Treasury yields," adding, "The gaming sector is up 5%."

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