As Institutions 'Palja' Turn, KOSPI Closes Slightly Lower... Foreigners Buy for 13 Consecutive Trading Days

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] On the 19th, the domestic stock market closed lower due to simultaneous buying by individuals and institutions. The KOSPI index, which had been rising during the session, ended the day down after institutions shifted from net buying to net selling, marking a decline after four consecutive trading days of gains.

On this day, the KOSPI closed at 2,237.44, down 12.51 points (0.56%) from the previous day. The index opened at 2,249.35, down 0.60 points (0.03%), but then recorded gains. Foreigners and institutions showed net buying dominance, pushing the index up to 2,266.80, but as institutions turned to net selling, the decline narrowed and the index turned negative. Individuals and institutions sold net amounts worth approximately 90.4 billion KRW and 83.3 billion KRW respectively, while foreigners alone bought 147.9 billion KRW worth of shares. Foreigners have been net buyers for 13 consecutive trading days.

Among the top market capitalization stocks, LG Energy Solution rose the most, up 1.74%. It was followed by Samsung Biologics (0.24%) and Samsung SDI (0.17%). Kakao, whose CEO Namgoong Hoon resigned taking responsibility for a service outage, rose 0.81%. SK Hynix, which is expected to report weak third-quarter earnings this year, fell more than 3%. LG Chem, which announced the acquisition of US Nasdaq-listed bio company Aveo Pharmaceuticals, also dropped 2.95%, followed by Celltrion (-2.83%), NAVER (-2.32%), Samsung Electronics (-1.24%), and Kia (-0.14%). Hyundai Motor remained flat.

By sector, non-metallic minerals (1.82%), steel & metals (1.14%), insurance (0.20%), and transportation & warehousing (0.13%) rose. Conversely, construction (-2.52%), medical precision (-1.68%), distribution (-1.28%), telecommunications (-1.19%), and services (-1.00%) declined.

Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "In a situation where uncertainty remains, the major indices fell in sync with the weakness in the Chinese stock market during the session," adding, "Unlike the early session, the shift to selling by individuals and institutions in the KOSPI also acted as a burden."

Lee Kyung-min, a researcher at Daishin Securities, said, "The continuous downward revision of earnings expectations is acting as a factor controlling the stock market's upward momentum, resulting in the KOSPI failing to break through the 2,250 level."

On this day, the won-dollar exchange rate opened at 1,424.0 won, up 1.3 won from the previous closing price. It then fell to the low 1,410 won range but ultimately closed at 1,426.2 won, up 3.5 won from the previous close.

The KOSDAQ index also closed lower on the day, down 6.53 points (0.94%) to 690.56. The index, which started higher, rose to 705.84, recovering above the 700 level. However, as institutions shifted to net selling, the index fluctuated and settled near the 690 level. Individuals and institutions sold net amounts worth approximately 12.2 billion KRW and 39.3 billion KRW respectively, while foreigners bought 49.8 billion KRW worth of shares, helping to defend against further declines.

Among the top market capitalization stocks, Cheonbo rose the most, up 4.85%. Secondary battery stocks also showed strength, with L&F and EcoPro BM rising 3.98% and 1.34% respectively. EcoPro also closed up 2.62%. On the other hand, HLB fell more than 4%, recording the largest decline. It was followed by Lino Industrial (-2.79%), Celltrion Pharm (-2.60%), Kakao Games (-2.55%), Celltrion Healthcare (-2.40%), and Pearl Abyss (-0.12%).

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