U.S. Shutdown Ends, Foreign Buying Drives KOSPI to Higher Close

"Some Uncertainty Eased as U.S. Shutdown Ends"
KOSPI Lacks Clear Sector-Specific Catalysts for Further Gains

With the official end of the U.S. federal government shutdown (temporary suspension of government work), the KOSPI index closed higher for the fourth consecutive session. The KOSDAQ index also continued its upward momentum, led by secondary battery and biotech stocks.

On November 13, the KOSPI index finished trading at 4,170.63, up 20.24 points (0.49%) from the previous day. The index opened at 4,127.57, down 22.82 points (0.55%), but turned upward in the afternoon. Foreign investors, who had been net sellers in the early session, switched to net buyers in the latter part of the day, purchasing about 100 million won worth of shares and leading the market higher. In contrast, institutional investors sold 717.7 billion won and individual investors sold 234.4 billion won worth of shares, respectively.

Among large-cap stocks, Celltrion (6.67%), Doosan Enerbility (5.99%), HD Hyundai Heavy Industries (5.97%), Korea Electric Power Corporation (3.36%), Hanwha Ocean (3.16%), HD Hyundai Electric (2.12%), LG Energy Solution (1.89%), and Hyundai Motor (1.09%) rose. On the other hand, Samsung C&T (-1.53%), KB Financial Group (-0.89%), Shinhan Financial Group (-0.86%), and SK Hynix (-0.81%) declined.

"U.S. Shutdown Lifted... Market Sees Expectations Already Priced In"

By sector, most industries advanced, including machinery and equipment (3.94%), medical precision instruments (2.87%), metals (2.73%), entertainment and culture (2.64%), electricity and gas (2.55%), construction (2.45%), pharmaceuticals (1.87%), chemicals (1.63%), transportation equipment and parts (1.41%), and food, beverages, and tobacco (1.40%). In contrast, insurance (-1.04%), transportation and warehousing (-0.59%), and retail (-0.43%) sectors weakened.

Most previously leading sectors remained on the sidelines without clear new catalysts. Although the U.S. shutdown was officially lifted, the prevailing view was that related expectations had already been reflected in the market, resulting in a limited impact on the stock market. Kim Jiwon, a researcher at KB Securities, said, "Although the KOSPI rose for four consecutive days, the momentum appeared to have slowed somewhat. The index started lower due to the burden from the previous day's sharp rise, but turned upward thanks to strength in some shipbuilding and nuclear power stocks."

On the 13th, the KOSPI index is displayed on the status board of Shinhan Bank dealing room in Jung-gu, Seoul. Photo by Shinhan Bank

"KOSDAQ Continues Two-Day Rally Led by Secondary Battery and Biotech Stocks"

The KOSDAQ index closed at 918.37, up 11.86 points (1.31%) from the previous day. The index opened at 904.36, down 2.15 points (0.24%), but quickly reversed to an upward trend. Institutional investors were net buyers of 92.2 billion won, and individual investors net bought 36.6 billion won. Foreign investors, however, were net sellers of 79.6 billion won.

The strength in secondary battery and biotech stocks continued for the second day, resulting in the KOSDAQ outperforming the KOSPI. Among large-cap stocks, Abl Bio (29.04%), Hugel (6.00%), Peptron (5.78%), EO Technics (5.60%), Classys (4.78%), Robotis (3.57%), PharmaResearch (3.11%), Ecopro BM (3.03%), Celltrion Pharm (2.94%), Samchundang Pharm (1.97%), Rainbow Robotics (1.90%), and Ecopro (1.18%) advanced. Meanwhile, Caregen (-4.11%), Voronoi (-1.79%), LIG ChemBio (-1.64%), Wonik IPS (-1.57%), and Leeno Industrial (-1.23%) declined.

Researcher Kim said, "With the end of the shutdown, the federal government system is normalizing, and the release of key economic indicators that had been suspended is resuming, so sources of uncertainty in the stock market are expected to dissipate quickly." However, he added, "It is reported that major indicators such as the October employment report and the Consumer Price Index (CPI) may not be released, so it will likely be difficult to gauge the direction of the Federal Reserve's monetary policy until the November data, which will be compiled and released in December, becomes available."

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