Strong Dollar Impact Continues... KOSPI Ends Mixed with a Decline

[Asia Economy Reporter Minji Lee] The KOSPI fluctuated between gains and losses before ultimately closing in a downward trend. This was due to the lingering effects of a strong dollar following the rise in U.S. Treasury yields the previous day, with no clear upward momentum found.

On the 21st, the KOSPI closed at 2,213.12, down 0.22% (4.97 points) from the previous trading day. The rise in U.S. Treasury yields, strong dollar, and recession concerns weighed on the index. Although there was an attempt to rise during the session, touching 2,224.04 points, the lack of clear upward momentum led to a decline by the close.

In the market that day, foreigners, institutions, and individuals all showed no clear investment direction. Foreigners net bought stocks worth 22.5 billion KRW, institutions net bought 19.9 billion KRW worth of stocks, while individuals alone sold stocks worth 70.4 billion KRW. Lee Kyung-min, a researcher at Daishin Securities, said, "Hawkish remarks from Federal Reserve (Fed) officials increased tightening concerns, and notably, both short- and long-term U.S. Treasury yields rose further during the session, which burdened the stock market. However, since rate hikes have been a negative factor for the financial market for a considerable period, the decline was limited."

By sector, construction (-4.70%) and machinery (-2.67%) sectors showed weakness. These sectors were analyzed to have seen a sharp contraction in investment sentiment due to the rapid cooling of the real estate project financing (PF) market amid concerns over a potential default on the Gangwon-do Legoland ABCP.

Among the top market capitalization stocks, Samsung SDI rose sharply by 6.45%. EcoPro BM (4.31%) also gained, buoyed by news of the completion of the world's largest cathode material factory. Semiconductor leaders Samsung Electronics (0.72%) and SK Hynix (0.33%) also closed higher, positively influenced by the previous day’s U.S. stock market where semiconductor companies rose on undervaluation appeal. Conversely, LG Chem (-0.18%), Hyundai Motor (-0.89%), Kia (-0.73%), and NAVER (-1.48%) closed lower.

The KOSDAQ index closed at 674.48, down 0.88% (5.96 points) from the previous day. Although it rose to 682.49 points during the session, the decline widened in the afternoon. Foreigners net sold stocks worth 59 billion KRW, and institutions also sold stocks worth 28.5 billion KRW. Individuals alone net bought stocks worth 86 billion KRW.

Among the top market capitalization stocks, Celltrion Healthcare (0.95%), EcoPro (0.34%), Kakao Games (1.88%), Pearl Abyss (0.62%), Celltrion Pharm (0.32%), Chunbo (0.82%), and Rino Industries (1.58%) closed higher. Meanwhile, L&F (-0.73%) and HLB (-3.53%) closed lower.

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