KOSPI Gives Up Gains Despite FOMC Relief Rally... KOSDAQ Also Ends Slightly Lower

On December 11, the KOSPI, which had opened higher, reversed course during the session and closed in the 4,110 range.

On this day, the KOSPI ended at 4,110.62, down 24.38 points (0.59%) from the previous session. The index initially opened at 4,163.32, up 28.32 points (0.68%) from the previous day and moved sideways for a while, but gave up all of its gains as the afternoon session progressed.

Shinhan Bank Dealing Room. Shinhan Bank

Retail investors and foreign investors each net purchased 403.8 billion won and 346.2 billion won, respectively, marking a rare occasion of both groups being net buyers. However, institutional investors alone sold off 771.1 billion won, putting downward pressure on the index. In the KOSPI 200 futures market, retail and foreign investors also net purchased 155.3 billion won and 112.2 billion won, respectively, while institutional investors alone net sold 293 billion won.

The top market capitalization stocks on the KOSPI ended mixed. SK Hynix (-3.75%), Hyundai Motor (-2.31%), HD Hyundai Heavy Industries (-2.10%), Hanwha Aerospace (-2.06%), Samsung Electronics (-0.65%), and Kia (-0.41%) declined, while LG Energy Solution (1.02%), Doosan Enerbility (0.65%), KB Financial Group (0.24%), and Samsung Biologics (0.24%) advanced.

Lim Jeongeun, a researcher at KB Securities, commented, "The market opened higher on relief from the Federal Open Market Committee (FOMC), but investor sentiment weakened as large-cap stocks such as SK Hynix were designated as investment warning stocks." She added, "The mixed trend persisted due to heightened caution over increased volatility on futures and options expiration day." Additionally, concerns over an artificial intelligence (AI) bubble resurfaced following Oracle's disappointing revenue, further dampening investor sentiment.

An 'Investment Warning' is the second of three risk levels on the exchange (Investment Caution → Investment Warning → Investment Risk). Under this designation, margin or credit purchases are restricted, and trading suspensions are possible. The first review date for the potential removal of SK Hynix's investment warning status is scheduled for December 24.

On the same day, the KOSDAQ closed at 934.64, down 0.36 points (0.04%) from the previous session. The index had opened at 940.59, up 5.59 points (0.60%), but at one point fell to 929.56 before partially recovering its losses to end slightly lower. Retail and foreign investors net purchased 49.2 billion won and 35.5 billion won, respectively, while institutional investors net sold 36.2 billion won.

All of the top 10 KOSDAQ stocks by market capitalization declined, including Ecopro (-3.42%), ABL Bio (-3.30%), Ecopro BM (-3.18%), Peptron (-2.85%), HLB (-1.43%), Kolon TissueGene (-1.33%), Samchundang Pharm (-1.04%), LIG ChemBio (-0.85%), Alteogen (-0.66%), and Rainbow Robotics (-0.32%).

By industry, non-life insurance (+16.79%) showed notable strength, followed by road and rail transportation (+8.04%), beverages (+3.79%), and building materials (+3.00%). In contrast, oil and gas (-1.84%), semiconductors (-1.65%), and game and entertainment (-1.55%) sectors experienced corrections.