KOSPI Holds 2400... Amid Deepening 'Wait-and-See Sentiment,' 'Recovery Market Betting'

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[Asia Economy Reporter Lee Seon-ae] On the 10th, the KOSPI, which started the day lower, is holding firm above the 2400 level while maintaining its intraday losses. Individual and institutional investors are showing a buying preference in the KOSPI market, and foreigners are also recording net purchases in the futures market.

As of 1:46 PM, the KOSPI is at 2408.72, down 0.65% from the previous trading day. The KOSPI opened lower due to a sharp drop in the U.S. stock market overnight, which dampened investor sentiment. Additionally, Binance's announcement to withdraw from acquiring FTX increased volatility in the cryptocurrency market, adding to the pressure. However, influenced by foreign investors' futures buying, the index managed to reduce its intraday losses.

At this time, individual investors are net buyers of about 145.8 billion KRW in the KOSPI market. Institutions also show a buying preference with a net purchase of 17.6 billion KRW. Foreigners are net sellers by about 169.1 billion KRW in the KOSPI market but are net buyers by 30.5 billion KRW in the futures market.

Choi Yoon-ah, a researcher at Shinhan Investment Corp., said, "The KOSPI is showing a weak trend due to cautious sentiment over the U.S. Consumer Price Index (CPI) and uncertainties surrounding the U.S. midterm elections, which are putting pressure on the strong dollar," adding, "Foreigners have switched to net selling by offloading semiconductor and steel sectors."

Seo Sang-young, a researcher at Mirae Asset Securities, said, "The U.S. stock market declined due to the dollar strengthening following the Republican Party's midterm election gains and volatility in the cryptocurrency market, which weighed on the domestic market and led to a lower start," and added, "However, considering that it is an options expiration day, changes may be seen depending on foreign futures trends."

Han Ji-young, a researcher at Kiwoom Securities, forecasted, "The domestic market will show a weak trend influenced by adjustments in major U.S. sectors such as semiconductors, big tech, and energy due to uncertainties over the U.S. midterm elections, despite favorable foreign demand conditions, and cautious sentiment ahead of the October U.S. CPI (consensus 7.9%)."

The market is showing a pause ahead of the U.S. CPI announcement. The expected October CPI in the U.S. market is 7.9%. Morgan Stanley, Wells Fargo, and Bank of Montreal expect 8%, Goldman Sachs and HSBC expect 7.9%, while Credit Suisse, Nomura Securities, and Bank of America expect 7.8%. If the CPI comes out high, expectations for the Federal Reserve's (Fed) pace of interest rate hikes may be dampened. If inflation is not properly controlled, the Fed is likely to adopt a hawkish stance with high-intensity tightening again, which would inevitably weigh on the stock market.

The researcher said, "Although short-term market volatility may increase until the runoff vote for the U.S. midterm elections in Georgia scheduled for the 6th of next month, the overall market trajectory will be dependent on existing macroeconomic events such as the CPI and Federal Open Market Committee (FOMC) announcements."

By KOSPI sectors, food and beverage (2.01%), textiles and apparel (1.14%), and medical precision (1.06%) are rising, while electrical and electronics (-1.41%), electric and gas utilities (-1.37%), securities (-1.25%), and chemicals (-1.20%) are falling.

Among the top market capitalization stocks, the trend is mixed. The bellwether Samsung Electronics is down 2.10% at 60,700 KRW, marking a decline after five trading days. This is interpreted as influenced by the Philadelphia Semiconductor Index in the U.S. falling 78.57 points to 2424.82 the previous day. However, securities firms are analyzing that Samsung Electronics will trend upward in the long term. Kim Dong-won, a researcher at KB Securities, said, "Unlike competitors whose NAND losses are expanding in the fourth quarter, Samsung Electronics currently secures a profitable structure in NAND, enabling proactive demand creation by leveraging NAND's price elasticity."

Samsung SDI, LG Chem, Naver, and Hyundai Mobis are also on a downward trend. Samsung Biologics, Hyundai Motor, and Celltrion are showing slight gains.

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