KOSPI Stagnates Despite Foreign Buying Pressure... KOSDAQ Closes Lower

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The KOSPI index gave up its gains and closed flat. Foreign investors showed net buying, but individuals and institutions sold off.

On the 18th, the KOSPI index closed at 2444.48, up 1.58 points (0.06%) from the previous trading day. The index opened at 2448.13, up 5.23 points (0.21%), and rose to as high as 2471.87. However, it later gave up some of the gains and ultimately closed around the 2440 level. Foreign investors, who had recorded net selling the previous day, showed net buying worth approximately 197.7 billion KRW. Individuals and institutions sold about 150.2 billion KRW and 77.7 billion KRW respectively. Institutions recorded net selling for five consecutive trading days.

Among the top market capitalization stocks, SK Hynix and Samsung Biologics rose 0.80% each, recording the largest gains. Despite the forecast of an operating loss in Q4 this year, SK Hynix showed a rise of over 3% during the day. Samsung Electronics (0.65%), LG Chem (0.57%), LG Energy Solution (0.17%), and Samsung SDI (0.14%) followed in gains. On the other hand, Kakao fell more than 2%, followed by Naver (-1.37%), Kia (-0.45%), and Hyundai Motor (-0.29%).

By sector, machinery (1.00%), textiles and apparel (0.96%), steel and metals (0.82%), transportation equipment (0.52%), construction (0.51%), and electrical and electronics (0.46%) rose. Meanwhile, service (-1.24%), non-metallic minerals (-0.56%), transportation and warehousing (-0.52%), paper and wood (-0.45%), and finance (-0.41%) sectors showed weakness.

Lee Kyung-min, a researcher at Daishin Securities, explained, "The index rose to 2470 points early in the session, supported by foreign investors' net buying in cash and futures markets, but as foreign investors switched to net selling in futures, the KOSPI narrowed its gains. The market's expectations for a slowdown in tightening that had been flowing in have somewhat retreated."

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "The US stock market fell the previous day due to hawkish remarks from Federal Reserve (Fed) officials and concerns about economic slowdown. Although bargain buying mainly in large-cap stocks such as semiconductors and secondary batteries occurred after the previous day's decline, it was insufficient to drive the index higher."

On the 17th (local time), the US stock market closed lower due to hawkish remarks from Fed officials. The Dow Jones Industrial Average fell 7.51 points (0.02%) to 33,546.32, the large-cap focused S&P 500 dropped 12.23 points (0.31%) to 3,946.56, and the tech-heavy Nasdaq fell 38.70 points (0.35%) to 11,144.96. James Bullard, President of the Federal Reserve Bank of St. Louis, dampened investor sentiment by stating that the policy rate is "not yet in a sufficiently restrictive range."

The KOSDAQ index closed lower, down 5.62 points (0.76%) to 731.92, marking a decline for three consecutive trading days. The index opened at 738.34, up 0.80 points (0.11%), and initially extended gains to 742.17. However, it gave up gains and turned negative in the afternoon. Individuals bought about 104.5 billion KRW, helping to defend against further declines. Foreigners and institutions sold about 83.9 billion KRW and 12.3 billion KRW respectively.

Among the top market capitalization stocks, except for Rino Industrial which remained flat, most showed declines. Kakao Games and L&F fell more than 2%. Others followed: Cheonbo (-1.78%), Pearl Abyss (-1.70%), Celltrion Pharm (-1.57%), EcoPro BM (-1.35%), EcoPro (-1.34%), HLB (-1.09%), and Celltrion Healthcare (-0.61%). Wemade fell 4.58% after the investment caution designation period for its issued cryptocurrency WEMIX was extended again.

On the day, the won-dollar exchange rate rose 1.2 won from the previous closing price to 1340.3 won.

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