"Thank You 2nd Battery"... Domestic Stock Market Ends Slightly Lower Despite US Giant Step

Foreigners Net Buy KOSPI 172.6 Billion KRW and KOSDAQ 34.6 Billion KRW
Kakao Drops Over 4%, Falls to 12th in KOSPI Market Cap Rankings

On the 3rd, as the U.S. Federal Reserve (Fed) showed a more hawkish stance than the market expected, the domestic stock market also started lower. This is a view of the Hana Bank dealing room in Jung-gu, Seoul. On that day, the KOSPI opened at 2297.45, down 39.42 points (1.69%) from the previous trading day, and the won-dollar exchange rate opened at 1425.3 won, up 7.9 won. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Ji Yeon-jin] Despite the U.S. 'Giant Step' (75bp base rate hike), the domestic stock market closed slightly lower on the 3rd. The KOSPI index briefly rebounded as foreigners switched to buying during the session, but it ultimately closed down due to increased selling pressure from institutions.

On this day, the KOSPI index closed at 2,329.17, down 7.70 points (0.33%) from the previous day. Individuals were net buyers worth approximately 382.8 billion KRW, and foreigners also purchased about 172.6 billion KRW. Institutions alone sold about 585.2 billion KRW.

The KOSPI started the day down 1.6% following the Federal Open Market Committee (FOMC) decision to raise the base rate by 75bp, but rebounded during the session as foreigners turned to buying. However, heavy selling by institutions toward the end of the session led to a slight decline at close.

Samsung Electronics' stock price experienced a rollercoaster ride similar to the KOSPI index. After dropping 2% early in the session, Samsung Electronics turned to slight gains during the day, rising to 59,700 KRW. However, with institutions expanding their selling, it ultimately closed slightly lower (-0.67%). Foreigners have been net buyers of Samsung Electronics for four consecutive days, and individuals also purchased shares on this day, but institutions were net sellers.

The sector that helped defend the domestic market's losses was secondary batteries. LG Energy Solution rose 3.51%, while Samsung SDI and SK Innovation increased by 1.93% and 3.27%, respectively. LG Chem also recorded a 1.64% gain. POSCO Chemical closed up 7.07%.

On the other hand, Samsung Biologics, which had a successful intraday rebound, closed down 0.34%, and SK Hynix fell 2.13%. Hyundai Motor (-1.82%), NAVER (-2.87%), Kia (-2.57%), and Celltrion (-1.33%) also showed weakness. Kakao dropped 4.21%, losing its 11th place in market capitalization ranking to Samsung C&T Corporation (1.69%).

Among the top market capitalization stocks on the KOSDAQ, only secondary battery material stocks such as EcoPro BM (1.73%), L&F (0.23%), EcoPro (3.34%), and Cheonbo (2.74%) rose.

Kakao Games fell 5.32%, and Pearl Abyss dropped 4.25%, showing a sharp decline in gaming stocks. Bio stocks such as Celltrion Healthcare (-2.03%), HLB (-2.33%), and Celltrion Pharm (-2.51%) also recorded losses exceeding 2%.

The KOSDAQ index closed at 694.13, down 3.24 points (0.46%) from the previous day. Individuals were net buyers worth about 77.3 billion KRW, and foreigners also purchased about 34.6 billion KRW. Institutions sold about 108 billion KRW.

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "The KOSPI and KOSDAQ started down about 1% as investment sentiment weakened following the U.S.'s fourth consecutive Giant Step, but secondary battery-related stocks on both indices rose during the session, reducing the decline in the indices. This reflected expectations for strong third-quarter earnings from leading secondary battery companies and expanded global market share, as well as positive news about POSCO Chemical's full-scale launch of next-generation anode material business."

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