Mixed Close in a Cautious Market... 'Institutional Picks' KOSPI Rises, 'Individual Picks' KOSDAQ Falls (Summary)

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[Asia Economy Reporter Ji Yeon-jin] On the 13th, the domestic stock market closed mixed. Concerns over economic slowdown in major countries such as the United States and China were highlighted, and with the long Chuseok holiday approaching, a cautious stance deepened. The KOSPI showed a slight gain, while the KOSDAQ fell more than 1%. This is the analysis.

The KOSPI index closed at 3,127.86, up 2.10 points (0.07%) from the previous trading day. The KOSPI opened at 3,117.35 and initially widened its losses due to continued selling by individual investors, but rebounded as institutional investors stepped in to buy. On the day, institutions net purchased about 205 billion KRW, and foreigners also bought around 137.4 billion KRW. Conversely, individuals net sold 336.5 billion KRW.

Among the top market capitalization stocks, Samsung Electronics rose 1.33% (1,000 KRW) to 76,300 KRW, and SK Hynix (1.43%), LG Chem (0.95%), and Kia (0.12%) also showed gains. On the other hand, Kakao fell 4.23%, and the rest mostly declined. Kakao Bank also dropped more than 6%, with all listed Kakao Group stocks recording declines.

In particular, in the KOSPI market, steel and energy chemical stocks such as POSCO (4.17%), Korea Zinc (3.94%), Lotte Chemical (3.82%), and Hanwha Solutions (4.16%) showed strong performance. Kim Sung-no, a researcher at BNK Investment & Securities, said, "Since a top-down momentum slowdown is accompanied by a weakening bottom-up momentum, it is difficult to expect a sharp rise in stock prices. Interest in small and mid-cap stocks is expected to increase, and considering earnings, valuation, and dividends comprehensively, banks, steel, and telecommunications are relatively attractive sectors."

The KOSDAQ closed at 1,026.34, down 1.11% from the previous trading day. The KOSDAQ started trading at 1,036.86, but the sell-off by institutions and foreigners increased, widening the losses. Individuals net purchased about 345.3 billion KRW, while institutions and foreigners net sold 230.8 billion KRW and 90.1 billion KRW, respectively.

Among the top market capitalization stocks on the KOSDAQ, L&F surged more than 16% after a significant upward revision of its operating profit forecast. EcoPro BM (0.67%) and HL Biopharma (0.62%) showed early gains but gave up their advances in the afternoon, and Seegene turned down by 0.32%. Celltrion Healthcare and Celltrion Pharm also fell more than 2%.

Lee Kyung-min, a researcher at Daishin Securities, said, "This Chuseok holiday is relatively long at five days, and considering that the September U.S. Federal Open Market Committee (FOMC) meeting is scheduled right after the holiday, the tendency to avoid uncertainty may increase. Since 2010, the KOSPI has performed poorly during the week before the Chuseok holiday. The average weekly return was -0.47%, with 7 out of 12 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, since a long holiday is approaching next week, it is appropriate to prepare for increased volatility caused by reduced trading and sudden changes in supply and demand due to deepening cautious sentiment from midweek onward."