KOSPI Falls 1.4% as Foreign and Institutional Investors Sell... "Weakness in Semiconductor and Secondary Battery Stocks"
Closed at 2450 Points
KOSDAQ Also Down 0.78%
Exchange Rate Up 8.6 Won to 1319.1 Won
The KOSPI index recorded a decline of over 1.4% as foreigners and institutions released sell orders.
On the 6th, the KOSPI index closed at 2,459.23, down 35.98 points (1.44%) from the previous day. The index started at 2,488.00, down 7.21 points (0.29%), and the decline widened as foreigners and institutions showed selling pressure. Foreigners and institutions sold approximately 483.4 billion KRW and 506.0 billion KRW respectively, while individuals net bought about 956.7 billion KRW, helping to cushion further index declines.
Among the top market capitalization stocks, most showed declines except for Samsung Biologics, which rose 2.16%. Samsung SDI fell the most, down 4.24%. Following were Naver (NAVER) (-3.66%), POSCO Holdings (-2.95%), Samsung Electronics (-2.50%), LG Chem (-2.19%), LG Energy Solution (-1.36%), SK Hynix (-0.95%), Hyundai Motor (-0.86%), and Kia (-0.37%).
By sector, the medical precision sector recorded a drop of over 2.7%. The electrical and electronics (-2.19%), textiles and apparel (-2.17%), securities (-1.91%), steel and metals (-1.81%), and transportation and warehousing (-1.79%) sectors also declined. Conversely, pharmaceuticals (1.20%), electric and gas utilities (0.33%), non-metallic minerals (0.31%), and telecommunications (0.04%) rose.
Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "Concerns over an economic recession have expanded due to consecutive weak U.S. economic indicators. Foreigners increased their selling in the current futures market, selling over 2 trillion KRW in futures, which led to weakness across large-cap stocks including semiconductors and secondary batteries." He added, "The won-dollar exchange rate also rose, reflecting foreigners’ sell orders and a preference for safe assets amid recession fears. Ahead of Samsung Electronics’ preliminary earnings announcement, concerns over an earnings shock also weighed on semiconductor stocks."
On the day, the won-dollar exchange rate closed at 1,319.1 KRW per dollar, up 8.6 KRW from the previous day’s close. It opened at 1,316.5 KRW, up 6.0 KRW from the previous close, and rose to as high as 1,320.5 KRW during the session.
The KOSDAQ index closed down 6.78 points (0.78%) at 865.58. Although it fell to 859.13 during the session, it narrowed losses and defended the 860 level. Foreigners and institutions net sold about 219.2 billion KRW and 119.0 billion KRW respectively, while individuals net bought about 337.1 billion KRW.
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Among the top market capitalization stocks, L&F fell the most, down 3.95%. Kakao Games, which is facing a copyright infringement lawsuit from NCSoft, dropped 3.73%, and Pearl Abyss also fell more than 3%. On the other hand, EcoPro BM rose 5.32%, followed by Celltrion Healthcare (1.94%), EcoPro (1.36%), Celltrion Pharm (1.08%), and HLB (0.70%).
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