KOSPI Starts Higher on Institutional Net Buying... 2nd Battery Stocks 'Jureureuk'

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] The KOSPI showed an upward trend in the morning session on the 8th, starting off smoothly. However, with the U.S. midterm elections approaching and increasing political uncertainty, secondary battery-related stocks are collectively declining.

As of 9:15 a.m. on the day, the KOSPI stood at 2,383.82, up 0.51% (12.03 points) from the previous trading day. The KOSPI opened at 2,387.20, up 0.65% (15.41 points) from the previous day, and continued its upward momentum.

Among KOSPI investors, institutional investors alone are buying stocks worth 27.6 billion KRW. Meanwhile, foreigners and individuals are net sellers of stocks worth 28.4 billion KRW and 5.1 billion KRW, respectively.

Among the top market capitalization stocks, semiconductor stocks are showing gains. Samsung Electronics is trading at 61,200 KRW, up 1.66% (1,000 KRW) from the previous day, and SK Hynix is also up 1.50% (1,300 KRW) at 87,800 KRW. Samsung Electronics Preferred shares also rose 1.29%.

On the other hand, secondary battery-related stocks are weak amid concerns that legislation including the Inflation Reduction Act (IRA) could be affected ahead of the U.S. midterm elections. LG Energy Solution is trading at 577,000 KRW, down 1.70% (10,000 KRW) from the previous day. Samsung SDI is down 2.16% (16,000 KRW) at 724,000 KRW, and LG Chem retreated 2.84% (20,000 KRW) to 684,000 KRW.

At the same time, the KOSDAQ index is at 705.68, up 0.74% (5.20 points) from the previous trading day. The KOSDAQ opened at 703.36, up 0.41% (2.88 points), gradually increasing its upward trend.

On the KOSDAQ, individual investors alone are buying stocks worth 8.8 billion KRW. Meanwhile, foreigners and institutions are net sellers of 6.8 billion KRW and 1.2 billion KRW, respectively.

Among the top market capitalization stocks on the KOSDAQ, secondary battery-related stocks are also showing significant declines. Ecopro BM lost its top spot in KOSDAQ market capitalization, trading at 107,500 KRW, down 1.10% (1,200 KRW) from the previous day. Other secondary battery stocks such as L&F (-1.06%) and Cheonbo (-1.86%) are also collectively weak. Meanwhile, Celltrion Healthcare (1.80%), Kakao Games (2.41%), and Celltrion Pharm (1.53%) are rising.

The decline in the won-dollar exchange rate also appears to be partially influencing the domestic stock market's upward trend. As of 9:02 a.m. in the Seoul foreign exchange market, the won-dollar exchange rate stood at 1,394.5 KRW, down 6.7 KRW from the previous day's closing price. The exchange rate opened at 1,394.0 KRW, down 7.2 KRW from the previous close, continuing its downward trend in the early session.

There are forecasts in the securities industry that the domestic stock market will show differentiated movements by sector today. Ji-young Han, a researcher at Kiwoom Securities, said, "The domestic stock market is expected to show an upward trend due to the effect of won appreciation," but added, "With caution related to the U.S. midterm elections and the Consumer Price Index (CPI) also entering, the market will show differentiated trends among some sectors such as automobiles and eco-friendly industries due to issues surrounding changes in the Inflation Reduction Act."

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