[Asia Economy Reporter Ji Yeon-jin] The domestic stock market is showing a cautious stance ahead of the long Chuseok holiday and following negative news from the U.S. market on the 13th.
As of 10:30 a.m. on the day, the KOSPI index was trading at 3,118.25, down 7.51 points (0.24%) from the previous trading day. The KOSPI opened at 3,117.35 but narrowed its losses due to buying by foreigners and institutions. Institutions were net buyers of 56.8 billion KRW, and foreigners were net buyers of about 25.5 billion KRW. However, individuals were net sellers of 77.2 billion KRW.
Among the top market capitalization stocks, Samsung Electronics (0.66%) and SK Hynix (0.95%) were on the rise, while most others showed a downward trend. Kakao fell 2.31%, and Celltrion also recorded a decline of over 2%. LG Chem remained flat.
At the same time, the KOSDAQ index recorded 1,030.66, down 7.25 points (0.70%) from the previous trading day. Individuals were net buyers of about 228.2 billion KRW, while foreigners and institutions were net sellers of approximately 132.6 billion KRW and 71 billion KRW, respectively.
LN F soared more than 17% after a significant upward revision of its operating profit forecast, and EcoPro BM (3.65%), HL Biopharma (0.15%), Pearl Abyss (1.10%), and Seegene (0.95%) also showed gains. Celltrion Healthcare and Celltrion Pharm fell 2.22% and 2.17%, respectively, and Kakao Games dropped 1.63%.
Lee Kyung-min, a researcher at Daishin Securities, said, "This Chuseok holiday is relatively long at five days, and considering that the U.S. Federal Open Market Committee (FOMC) meeting is scheduled right after the holiday in September, the tendency to avoid uncertainty may increase." He added, "Since 2010, the KOSPI has underperformed during the week before the Chuseok holiday. The average weekly return was -0.47%, with seven out of twelve weeks (58%) showing weakness, so it is a time to be cautious ahead of the Chuseok holiday."
Han Ji-young, a researcher at Kiwoom Securities, said, "The downward pressure on the stock market caused by macro events scheduled this week is expected to be limited." However, she added, "Considering the long holiday next week, it is appropriate to prepare for increased price volatility caused by reduced trading and sudden changes in supply and demand due to intensified cautious sentiment from midweek onward."
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