KOSPI Declines in Early Trading Ahead of BOJ Meeting Results Announcement

Individual Investors Solely Net Buying in KOSPI and KOSDAQ Markets

[Asia Economy Reporter Minji Lee] The KOSPI turned to a decline in early trading as foreigners and institutions continued their net selling. This is analyzed as a weakening preference for risk assets ahead of the Bank of Japan (BOJ) monetary policy meeting announcement.

[Image source=Yonhap News]

At 9:23 a.m. on the 18th, the KOSPI was at 2,371.36, down 0.34% (8.03 points) from the previous trading day. The index started at 2,380.36, up 0.04% (0.97 points) from the previous day, but soon turned downward. In the market, only individuals are net buyers. Individuals bought stocks worth 62.7 billion KRW, while foreigners and institutions sold stocks worth 48.5 billion KRW and 14.2 billion KRW, respectively.

Among the top market capitalization stocks, except for LG Energy Solution (0.87%), LG Chem (0.32%), NAVER (0.26%), and Kakao (0.32%), all are in decline. Samsung Electronics traded at 63,000 KRW, down 1.15% from the previous day. Other stocks such as Samsung Biologics (-0.76%), Samsung SDI (-0.81%), Hyundai Motor (-1.20%), and Kia (-0.92%) also declined.

Meanwhile, the KOSDAQ index at the same time was at 712.23, up 0.36% (2.52 points) from the previous day. The KOSDAQ index started the day at 711.12, up 0.2% (1.41 points) from the previous day, and is maintaining its upward trend.

In the market, individuals alone bought stocks worth 46 billion KRW, while foreigners and institutions sold stocks worth 34.7 billion KRW and 8.1 billion KRW, respectively. Among the top market capitalization stocks, Ecopro BM (-0.3%), Celltrion Healthcare (-0.35%), HLB (-1.75%), and Celltrion Pharm (-0.31%) declined, while L&F (2.09%), Kakao Games (0.65%), Ecopro (0.35%), Pearl Abyss (1.48%), Rino Industries (0.69%), and Studio Dragon (1.53%) rose.

The part to watch closely during the session is the Bank of Japan (BOJ) monetary policy meeting announcement. Within Japan, voices of caution regarding unlimited quantitative easing are emerging due to rising consumer prices and growing concerns about economic slowdown. The market is focusing on the possibility of additional tightening by the BOJ and whether the yield curve control (YCC) policy will be abandoned or adjusted. If the BOJ ends liquidity supply and pursues aggressive tightening policies, it could lead to a rise in long-term Japanese government bond yields, accelerating the repatriation of overseas funds. This could trigger an increase in government bond yields in major countries and dampen risk asset investment sentiment.

Han Ji-young, a researcher at Kiwoom Securities, said, “Amid the burden of a sharp drop in the New York manufacturing index and cautious sentiment toward the BOJ meeting, volatility is expected during the session. After the meeting results are announced, it will be necessary to prepare for the possibility of increased foreign investor supply and demand volatility depending on exchange rate fluctuations.”

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