KOSPI Ends Lower for 4 Consecutive Trading Days... KOSDAQ Rises Amid Institutional 'Buying'

by Lee Jungyun

Published 08 Sep.2023 16:15(KST)

Image source=Yonhap News

The KOSPI index closed lower for the fourth consecutive trading day. However, due to buying pressure from individuals and institutions, the decline was limited, maintaining the 2540 level.

On the 8th, the KOSPI index closed at 2547.68, down 0.58 points (0.02%) from the previous session. The index opened at 2546.07, down 2.19 points (0.09%), then briefly turned upward before continuing its downward trend. In the afternoon, it fell to 2530.05, widening the loss, but buying from individuals and institutions helped it close near the flat line. Individuals and institutions net bought approximately 216.2 billion KRW and 108.3 billion KRW respectively, while foreigners net sold about 355.1 billion KRW. Foreigners recorded net selling for the third consecutive trading day.

Among the top market capitalization stocks, only POSCO Holdings (2.64%) and POSCO Future M (1.33%) rose. SK Hynix dropped more than 4% following news that its memory semiconductors were used in Huawei's new smartphone. LG Chem (-2.25%), LG Energy Solution (-1.55%), Samsung SDI (-1.01%), Hyundai Motor (-0.80%), Naver (NAVER) (-0.69%), and Samsung Electronics (-0.14%) declined in that order. Samsung Biologics remained flat.

By sector, paper & wood (-1.14%), electrical & electronics (-0.82%), transportation equipment (-0.35%), manufacturing (-0.31%), and chemicals (-0.25%) showed weakness. Meanwhile, electricity & gas (3.24%), insurance (2.32%), steel & metals (2.10%), medical precision (1.44%), and securities (1.19%) sectors rose.

The KOSDAQ index closed at 914.18, up 7.82 points (0.86%) from the previous trading day. Individuals and foreigners net sold 40.2 billion KRW and 49.4 billion KRW respectively, while institutions alone net bought about 112.5 billion KRW.

Among the top market capitalization stocks, Rainbow Robotics (11.58%), EcoPro BM (3.46%), POSCO DX (3.23%), and JYP Ent. (2.18%) rose, while L&F fell 0.30%.

Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "Due to issues weakening the momentum of the domestic IT value chain, such as the Chinese government's restrictions on iPhone use and domestic semiconductors embedded in Huawei's latest smartphones, foreigners actively realized profits from the start of trading, leading to a weak trend. However, in the latter part of the session, the reduction in foreigners' net short positions in KOSPI futures, expanded institutional net buying in the KOSDAQ market, and reduced foreign net selling helped widen the gains."