Ants Shop KOSPI Worth 1 Trillion Won... 'Cheonsdak' Led by Foreigners (Comprehensive)

Mixed Close in Domestic Stock Market
KOSDAQ Recovers 1000 Level After 52 Days

[Asia Economy Reporter Ji Yeon-jin] On the 17th, the domestic stock market closed mixed. Although discussions on tapering (asset purchase reduction) began at the U.S. Federal Open Market Committee (FOMC), the KOSDAQ returned to the 'Cheonsdak' level after 52 days due to foreign buying, while the KOSPI reduced its intraday losses as individual investors purchased over 1 trillion won.

The KOSPI index closed at 3,264.96, down 13.72 points (0.42%) from the previous day. The index opened at 3,276.20, down 2.48 points (-0.08%) from the previous day, then widened its losses, falling as much as 30 points intraday, but narrowed the decline in the afternoon.

Individual investors net bought more than 1 trillion won (1.035 trillion won), but institutions net sold about 686.2 billion won, and foreign investors, who net sold 356.7 billion won, joined in, resulting in the index closing in the red.

Among the top market capitalization stocks, Kakao (3.50%) and LG Chem (3.34%) showed strength, while all others recorded declines. In particular, Samsung Electronics (-1.10%), the largest by market cap, along with SK Hynix (-2.32%), Hyundai Motor (-1.25%), and Kia (-1.68%) fell more than 1%.

The KOSDAQ index rose 5.23 points (0.52%) from the previous day to 1,003.72. This is the first time in 52 days since April 27 that the KOSDAQ has closed above the 1,000 mark. While individuals net sold 131.6 billion won, foreigners bought 123.9 billion won. Institutions also net bought 24.5 billion won on the day.

EcoPro BM surged 4.57%, and CJ ENM (3.26%) and HL Biopharma (2.72%) also showed strength. Celltrion Healthcare remained flat, and Celltrion Pharm (0.95%) closed with a slight gain. On the other hand, Pearl Abyss (-0.16%), Kakao Games (-1.58%), Seegene (-0.78%), and Alteogen (-1.05%) ended the day weaker.

Lee Jin-woo, head of investment strategy at Meritz Securities, said, "Today, the KOSPI is interpreted as a breather centered on large-cap stocks as the timing of the interest rate hike was brought forward by six months," adding, "The KOSDAQ has risen less than the KOSPI so far, so it is structurally less affected by the U.S., and since the tightening perception is more about the interest rate hike being anticipated earlier than an unexpected tightening, a slight adjustment is expected."

Lee Kyung-min, a researcher at Daishin Securities, said, "(The FOMC result) suggests it is difficult to see the Fed's monetary policy stance as having shifted to tightening," and evaluated, "The current monetary policy is maintained, and the tapering, which can gauge the speed of the Fed's monetary policy normalization, is still within the cautious discussion and possibility exploration stage, not deviating significantly from that scope."