Foreigners Face Supply-Demand Pressure Amid Dollar Strength... KOSPI Shows Slight Intraday Decline

KOSDAQ Approaches the 1000-Point Threshold

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The KOSPI is showing a slight decline as the burden of foreign demand and supply increases due to the strength of the US dollar. Meanwhile, the KOSDAQ continues its upward trend, approaching the 1000-point mark.

As of 11:01 AM on the 14th, the KOSPI recorded 3246.39, down 0.09% (2.93 points) from the previous trading day. Although it started the day higher, it turned downward at 9:22 AM and is currently showing a slight decline.

The strong US dollar is causing pressure on foreign demand and supply. Seo Sang-young, a researcher at Mirae Asset Securities, explained, “The US consumer sentiment index showed a better-than-expected improvement, causing the dollar to strengthen against various exchange rates,” adding, “Expectations for the passage of infrastructure investment-related legislation also contributed to the strength.”

In fact, the US Michigan Consumer Sentiment Index for May recorded 86.4, exceeding the market forecast of 84.2. Regarding the infrastructure investment bill, it is known that US Democratic and Republican senators agreed on a bill that does not require tax increases. Researcher Seo predicted, “As the market awaits the US Federal Open Market Committee (FOMC), cautious sentiment is expected to be strong, and the market will likely fluctuate around a slight decline.”

Foreigners and institutions are selling heavily. Foreigners and institutions sold a net amount of 147.6 billion KRW and 263.6 billion KRW, respectively. Individuals bought a net amount of 408 billion KRW.

Most sectors declined. The securities sector fell the most by 0.97%, followed by banks (-0.91%), financials (-0.90%), transportation equipment (-0.84%), and textiles and apparel (-0.79%). Meanwhile, paper and wood (3.09%), services (2.06%), pharmaceuticals (1.63%), electric and gas utilities (0.88%), and non-metallic minerals (0.85%) rose.

The top 10 stocks by market capitalization showed mixed results. Kakao had the largest gain at 4.80%, followed by Celltrion (4.14%), NAVER (3.76%), Samsung Biologics (0.47%), and Samsung SDI (0.16%). LG Chem (-2.59%), Kia (-1.45%), SK Hynix (-0.78%), Hyundai Motor (-0.63%), and Samsung Electronics (-0.62%) declined.

The KOSDAQ, at the same time, recorded 997.04, up 0.60% (5.91 points) from the previous trading day. It started the day higher and has continued to rise.

Institutional buying led to the index increase. Institutions bought a net amount of 17.9 billion KRW. Individuals and foreigners sold net amounts of 11.2 billion KRW and 3.1 billion KRW, respectively.

Many sectors showed strength. The retail sector rose the most by 2.37%, followed by paper and wood (2.30%), pharmaceuticals (1.74%), digital content (1.19%), and internet (1.12%). Meanwhile, transportation (-0.68%), construction (-0.66%), broadcasting services (-0.65%), telecommunications and broadcasting services (-0.50%), and semiconductors (-0.43%) declined.

Almost all of the top 10 stocks by market capitalization rose. Celltrion Pharm had the largest gain at 6.41%, followed by Seegene (5.93%), Alteogen (3.86%), Celltrion Healthcare (3.57%), Pearl Abyss (3.07%), Kakao Games (2.12%), SK Materials (0.85%), and HLB (0.75%). On the other hand, CJ ENM (-1.96%) and EcoPro BM (-0.05%) declined.