KOSPI and KOSDAQ Also 'Taking a Break for Seollal Holiday'... Close Slightly Lower (Comprehensive)

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] On the 4th, the stock market closed with a slight decline. The KOSPI index, which started the day with an upward trend, saw foreigners selling while individuals and institutions battled around the 3100 level, resulting in a second consecutive day of decline. The KOSDAQ also closed lower after minor fluctuations as foreigners and institutions continued to sell.

The KOSPI index closed at 3,084.67, down 6.57 points (0.21%) for the day. The KOSPI recovered above 3100 at the start of trading and maintained its upward momentum but turned downward about 10 minutes before the close. Individuals and institutions net bought approximately 46.5 billion KRW and 159.3 billion KRW respectively, while foreigners sold about 222.8 billion KRW, leading to a tug-of-war.

Among the top market capitalization stocks, SK Hynix (0.40%), Naver (NAVER, 0.28%), Samsung SDI (0.26%), Hyundai Motor (1.07%), and Kakao (0.88%) saw slight gains, while Samsung Electronics (-0.36%), LG Chem (-1.72%), Samsung Biologics (-0.25%), and Celltrion (-2.38%) recorded declines.

In particular, Celltrion showed a significant drop compared to the index after the Financial Supervisory Service imposed sanctions on Seegene, a COVID-19 diagnostic kit company, for inflating sales. Celltrion Healthcare (-2.53%) and Celltrion Pharm (-2.48%), both listed on KOSDAQ, also experienced large declines. Seegene retreated 2.78% to 175,100 KRW on the KOSDAQ market.

The KOSDAQ index closed at 957.85, down 2.93 points (0.30%). Individuals and foreigners net bought 55.8 billion KRW and 9.2 billion KRW respectively, while institutions net sold 50.5 billion KRW. With supply and demand evenly matched, the KOSDAQ traded back and forth around the previous day's closing price of 960.78 throughout the day.

Among the top market capitalization stocks on KOSDAQ, only composite materials company HL Biopharma (0.66%) and biopharmaceutical firm Alteogen (1.92%) ended the day with gains.

On the KOSPI, the stocks most heavily net bought by institutions were SK Hynix (74.6 billion KRW), LG Electronics (44.5 billion KRW), Kia Motors (44.4 billion KRW), and SK Innovation (39.9 billion KRW). Conversely, Samsung Electronics (-42.2 billion KRW), LG Chem (-40.9 billion KRW), Naver (-28.6 billion KRW), KODEX Leverage (-24.9 billion KRW), and Celltrion (-15.7 billion KRW) were heavily sold. Samsung Electronics (-153.7 billion KRW) was also the top stock sold by foreigners.

Hyundai Motor Group affiliates, which had been in the spotlight recently due to the 'Apple Car' issue, saw a sharp decline following news of halted cooperation with Apple the previous day but mostly rebounded on this day. Hyundai Motor and Hyundai Mobis rose 1.07% and 1.09% respectively, while Hyundai AutoEver jumped 6.56%. Kia Motors fell 1.62%.

Lee Jin-wook, head of investment strategy at Meritz Securities, commented, "Although there was the recent Apple Car issue, with earnings announcements completed, there are no further issues likely to influence the market direction. This is a typical pause in the market."

Kim Yong-gu, senior researcher at Hana Financial Investment, analyzed, "This year, families are not gathering for the Lunar New Year holiday, but since the holiday is long, there is considerable caution toward the US stock market, leading to profit-taking on previous gains ahead of the holiday." He added, "Global earnings are generally strong, so not only IT and automobiles but also materials and energy sectors could see strong inflow momentum."