KOSPI Fluctuates Amid High Exchange Rates and Political Instability, Closes at 2400 Level

On the 27th, the KOSPI index closed lower, slipping to the low 2400s. The USD/KRW exchange rate briefly surpassed 1480 won, political uncertainty expanded, and stocks that went ex-dividend saw significant price declines, creating a convergence of negative factors.

On that day, the KOSPI closed at 2404.77, down 24.90 points (1.02%) from the previous trading day. The index opened at 2419.46, down 10.21 points (0.42%), and during the session, it even fell below the 2400 level. Individual investors bought stocks worth 214.9 billion won alone, while foreigners and institutions sold stocks worth 174.8 billion won and 115.2 billion won, respectively.

On the 27th, employees are working in the dealing room at the Hana Bank headquarters in Euljiro, Seoul. Photo by Heo Young-han

Among the top market capitalization stocks, SK Hynix (2.59%), Meritz Financial Group (2.53%), and LG Energy Solution (1.02%) rose. On the other hand, Korea Zinc (-15.75%), Samsung Life Insurance (-3.28%), HD Hyundai Heavy Industries (-2.85%), Hyundai Mobis (-2.27%), Kia (-1.94%), Samsung C&T (-1.53%), Celltrion (-1.37%), Samsung Fire & Marine Insurance (-1.35%), and Hyundai Motor (-1.15%) declined.

By sector, Medical Precision (0.57%) and Electrical & Electronics (0.53%) rose. Most sectors fell, including Metals (-6.86%), Non-metallic Minerals (-4.81%), Securities (-3.84%), and Leisure & Culture (-2.56%).

Ji-won Kim, a researcher at KB Securities, said, "Political risks, the deepening won depreciation, and the ex-dividend issue worsened investor sentiment, leading to a decline of over 1%. Political uncertainty intensified ahead of the impeachment vote on Prime Minister Han Duck-soo, who is acting president, putting pressure on the stock market. The USD/KRW exchange rate rose to as high as 1486 won during the session. The ex-dividend effect also compounded the negative factors, leading to increased selling pressure, especially on high-dividend stocks closing their fiscal year this month."

He added, "However, the perception that most negative factors have already been priced in, along with expectations that the mood could quickly reverse once uncertainties are resolved, helped reduce the extent of the decline, and the KOSPI held the 2400 level."

The KOSDAQ index closed at 665.97, down 9.67 points (1.43%) from the previous session. The index opened at 674.30, down 1.34 points (0.20%), and the decline widened. Foreigners and institutions sold stocks worth 28.8 billion won and 125.3 billion won, respectively. Individual investors bought stocks worth 159.8 billion won.

Among the top market capitalization stocks, HLB (6.52%) and Classys (0.10%) rose. Meanwhile, Kolon TissueGene (-4.88%), Celltrion Pharm (-4.75%), Rigachem Bio (-4.42%), Samchundang Pharm (-4.42%), Hugel (-3.79%), and Shinseong Delta Tech (-3.78%) closed lower.

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