KOSPI Barely Holds 2600 Level... Exchange Rate Reenters 1300 Won Range

by Son Seonhee

Published 21 Dec.2023 15:55(KST)

On the 21st, the KOSPI index closed lower, barely holding above the 2600 level. Although the government announced a significant increase in the major shareholder threshold for stock capital gains tax from 1 billion KRW to 5 billion KRW, individual investors showed mixed buying sentiment in both markets and failed to reverse the downward trend of the index.

On that day, the KOSPI index closed at 2600.02, down 14.28 points (0.55%) from the previous session. This marked a decline after five consecutive trading days of gains since the 14th. Individual investors sold a net 50.4 billion KRW, while foreigners and institutions bought a net 12.4 billion KRW and 39.4 billion KRW, respectively.

Among the top market capitalization groups in the KOSPI market, Samsung Electronics (0.27%) and Kia (0.42%) closed slightly higher, while most other stocks were weak. LG Energy Solution fell 2.20%, and POSCO Holdings (-1.92%), NAVER (-1.81%), and LG Chem (-1.79%) also closed lower.

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "With the major shareholder capital gains tax threshold confirmed at 5 billion KRW, net buying by individuals increased, but the U.S. stock market closed weak due to profit-taking, leading to synchronization with the domestic market. Selling pressure expanded in sectors such as shipping, semiconductors, and secondary batteries, which had recently been rising."

The KOSDAQ index closed at 859.44, down 3.54 points (0.41%) from the previous session. Individuals and foreigners bought a net 82.5 billion KRW and 79.5 billion KRW, respectively, while institutions sold a net 140.2 billion KRW.

In the top market capitalization group of KOSDAQ, stock price directions varied significantly by company. Alteogen surged 21.02% in a single day, and POSCO DX, which is preparing for a transfer listing to KOSPI, rose 16.67%. HPSP also closed up 4.15%. On the other hand, Ecopro BM (-3.92%) and Ecopro (-4.81%) both underperformed, along with Celltrion Pharm (-2.18%) and L&F (-1.58%).