Uncertainty Over US Debt Ceiling Negotiations Highlights... KOSPI Retreats Below 2500

On the 10th, the domestic stock market closed on a downward trend. The KOSPI index retreated below the 2500 level for the first time in 7 trading days since the 27th of last month.

On this day, the KOSPI closed at 2496.51, down 13.55 points (0.54%) from the previous trading day. Foreign investors net bought 119.3 billion KRW, and individuals net bought 6.1 billion KRW, while institutions net sold 123.1 billion KRW.

Among the top 10 groups by market capitalization on the Korea Exchange, Samsung Electronics (-1.07%), SK Hynix (-0.46%), Samsung Biologics (-1.02%), LG Chem (-1.80%), and Samsung SDI (-1.18%) showed a downward trend. LG Energy Solution rose slightly by 0.53%, and Hyundai Motor and Kia Motors closed up 2.44% and 2.74%, respectively.

On the same day, President Joe Biden and House Speaker Kevin McCarthy held negotiations to discuss the US federal government's debt ceiling issue but showed little progress, increasing uncertainty. Although intensive negotiations are expected over the next two weeks, warnings that the US government could default between early next month and August have heightened market concerns.

Additionally, with the Federal Open Market Committee (FOMC) meeting scheduled for next month, the gap between the Federal Reserve (Fed) and the market regarding the possibility of an interest rate cut within the year remains, suggesting a continued 'wait-and-see' market environment for the time being.

The KOSDAQ closed at 829.74, down 6.11 points (0.73%) from the previous trading day. Individuals and institutions net bought 22.2 billion KRW and 0.7 billion KRW, respectively, while foreigners net sold 8.7 billion KRW.

Among the top market capitalization groups in the KOSDAQ market, the so-called 'Ecopro brothers,' Ecopro BM (-2.32%) and Ecopro (-5.30%), showed relatively large declines. Celltrion Healthcare (-1.08%) and L&F (-0.61%) also closed lower. HLB (1.68%), JYP Ent. (0.98%), and Pearl Abyss (0.78%) rose slightly.

Meanwhile, in the Seoul foreign exchange market, the won-dollar exchange rate closed at 1324.8 won, up 0.9 won from the previous day.

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