KOSPI Fluctuates Near 2400 Level... "Support at the Bottom Amid Lack of Upward Momentum"

[Asia Economy Reporter Oh Ju-yeon] The domestic stock market closed higher on the 18th after repeating limited fluctuations around the 2400 level. Ahead of the U.S. presidential election in November, with policy uncertainty, difficulties in reaching an agreement on the U.S. 5th economic stimulus package, and adjustments in tech stocks causing increased volatility in the U.S. stock market, gains were limited. However, due to foreign exchange market conditions, net buying of futures and spot by foreigners supported the downside, according to evaluations.

According to the Korea Exchange on the day, the KOSPI recorded 2412.40, up 0.26% from the previous trading day.

Among the top market capitalization stocks, Samsung Electronics (-0.34%) and NAVER (-0.83%) declined, while SK Hynix (1.82%), Samsung Biologics (0.13%), and LG Chem (3.26%) rose.

By investor type, individuals sold a net 140.3 billion KRW, institutions sold a net 17.1 billion KRW, and foreigners bought a net 142.6 billion KRW.

The KOSDAQ index rose 0.42% to 888.88.

Among the top market capitalization stocks, Celltrion Healthcare (0.31%), Celltrion Pharm (2.65%), and CJ ENM (3.44%) rose, while Seegene (-1.93%), HLB (-0.77%), Alteogen (-0.34%), and Kakao Games (-1.86%) declined.

By investor type, individuals bought a net 55.2 billion KRW, foreigners bought a net 131.8 billion KRW, and institutions sold a net 150.4 billion KRW.

Lee Kyung-min, a researcher at Daishin Securities, explained, "The won-dollar exchange rate has been falling rapidly (won strengthening). Just last week, the won-dollar exchange rate attempted to recover to the 1190 won level but quickly dropped to the 1160 won range, and today it is even threatening the 1160 won level."

He evaluated, "The won's strength increases the value of Korean assets and provides foreign investors with an additional return in the form of exchange gains, which is positive."

Lee added, "The sensitivity of the KOSPI to fluctuations in the won-dollar exchange rate is expected to increase for the time being. In the late September to early October phase, where many variables need to be confirmed, one more variable has been added. It is still difficult to be confident about the KOSPI's rise and stability, so it is not too late to confirm and respond to domestic and international variables, events, and changes in the foreign exchange market."