"Semiconductor and Secondary Battery Weakness"... KOSPI and KOSDAQ Close Lower

Enduring fears of an economic recession, the domestic index, which recorded a significant rise last week, lost momentum and closed lower on the 19th. Foreign investors realized profits mainly in large-cap stocks that had led the index rebound.

Employees are working in the dealing room at the Seoul Hana Bank headquarters. Photo by Heo Younghan younghan@

On the day, the KOSPI closed at 2,674.36, down 22.87 points (0.85%) from the previous trading day. The KOSPI opened at 2,697.97, up 0.74 points (0.03%), but eventually turned downward and widened its losses. Individual investors bought stocks worth 136.9 billion KRW alone, while foreigners and institutions sold stocks worth 143.8 billion KRW and 13.4 billion KRW, respectively.

Among the top market capitalization stocks, Samsung Life Insurance (5.41%), KB Financial Group (3.57%), HD Hyundai Heavy Industries (3.43%), Hana Financial Group (3.11%), Shinhan Financial Group (3.06%), and Meritz Financial Group (2.48%) rose. Conversely, Samsung SDI (-3.59%), SK Hynix (-2.90%), Kia (-2.55%), POSCO Holdings (-2.42%), Samsung Electronics (-2.37%), and LG Energy Solution (-2.08%) declined.

By sector, Medical Precision (4.13%), Insurance (3.68%), Finance (1.78%), and Securities (1.32%) rose. However, sectors such as Electrical & Electronics (-2.44%), Electric & Gas (-2.07%), Machinery (-1.89%), Manufacturing (-1.58%), and Food & Beverages (-1.49%) fell.

Lee Jaewon, a researcher at Shinhan Investment Corp., said, "Foreign investors realized profits in large-cap stocks that led the index rebound after an oversold period in semiconductor and secondary battery value chains. Notably, sectors with shareholder returns (value-up) and strong earnings (shipbuilding, finance) stood out. Samsung Life Insurance, among others, showed intraday gains exceeding 5% on expectations of dividend increases, and financial stocks continued to show strength amid value-up and strong earnings expectations."

The KOSDAQ index recorded 777.47, down 8.86 points (1.13%) from the previous session. The index started at 787.32, up 0.99 points (0.13%), but mostly declined throughout the day. Foreigners and institutions sold net amounts of 123.1 billion KRW and 17.4 billion KRW, respectively. Individuals bought stocks worth 141.8 billion KRW alone.

Among the top market capitalization stocks, ST Pharm (5.58%), Hugel (5.33%), Rainbow Robotics (4.07%), Ligand Chem Bio (2.74%), and Silicon Two (0.44%) rose. Stocks such as Samchundang Pharm (-6.57%), Rino Industrial (-5.63%), EcoPro BM (-5.33%), Celltrion Pharm (-4.62%), EcoPro (-4.58%), and Pharma Research (-3.46%) fell.

Kim Jiwon, a researcher at KB Securities, said, "The market, which showed fluctuations early in the session, saw a deepening decline as semiconductor representative stocks and large secondary battery stocks weakened. Financial stocks were strong on value-up momentum, and healthcare stocks rose amid the resurgence of COVID-19."

He added, "Notably, there was a significant movement in the exchange rate on the day. While expectations for a U.S. interest rate cut remained, the dollar hit its lowest level this year, leading to a weak dollar and strong Asian currencies. The yen's strength reappeared, causing both the Japanese and domestic stock markets to see a contraction in foreign investor sentiment. Additionally, with major central bank schedules concentrated this week, a wait-and-see stance likely also played a role."

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