Despite Uncertainty, KOSPI Closes Slightly Lower at 3127

KOSPI Closes at 1036 Level

[Asia Economy Reporter Minwoo Lee] Unlike the global stock markets that experienced sharp fluctuations due to the bankruptcy issues of Chinese real estate developer Evergrande (恒大·Hengda) during the Chuseok holiday and concerns over interest rate hikes by the Federal Open Market Committee (FOMC), the domestic stock market managed to close with a slight decline, showing relative resilience.

On the 23rd, the KOSPI closed at 3,127.58, down 0.41% (12.93 points) from the previous trading day. After opening slightly lower at 3,123.64, it dropped to 3,107.98 around 10:16 AM, a 1.04% decrease compared to the previous day, but then rebounded to maintain the 3,120 level.

Foreign investors were net buyers, purchasing stocks worth 553.1 billion KRW. Meanwhile, individual and institutional investors were net sellers, offloading 310.3 billion KRW and 227 billion KRW respectively.

Almost all sectors declined. The steel and metal sector saw the largest drop at -3.57%. This was followed by banks (-2.09%), non-metallic minerals (-1.93%), construction (-1.79%), paper and wood (-1.76%), and securities (-1.61%). Only telecommunications (1.95%), medical precision instruments (1.75%), chemicals (1.55%), and transportation and warehousing (1.46%) sectors rose.

Among the top 10 companies by market capitalization, LG Chem showed a notable increase of 8.42%. This was followed by Celltrion (3.27%), Samsung SDI (0.83%), Samsung Electronics (0.26%), and Kia (0.12%). On the other hand, Kakao (-3.77%), SK Hynix (-1.40%), Samsung Biologics (-1.39%), NAVER (-0.74%), and Hyundai Motor (-0.24%) declined.

The KOSDAQ closed at 1,036.26, down 0.94% (9.86 points) from the previous trading day. After opening slightly lower at 1,040.38 and maintaining the 1,040 level into the afternoon, the index fell towards the end of the session due to increased net selling by individuals. Although the decline was larger than that of the KOSPI, it still ended within a slight decline range.

In the KOSDAQ market, foreign and individual investors were net buyers of 54.3 billion KRW and 13.8 billion KRW respectively. However, individuals were also net sellers of 65.1 billion KRW.

Most sectors also declined. Construction (-3.39%), transportation equipment and parts (-3.39%), information devices (-2.76%), and software (-2.43%) saw the largest drops. Broadcasting services (1.90%), entertainment and culture (1.75%), and telecommunications broadcasting services (1.58%) rose.

Among the top 10 companies by market capitalization, many stocks rose. Celltrion Pharm’s increase of 6.77% was the largest. This was followed by L&F (5.50%), CJ ENM (3.66%), EcoPro BM (2.75%), Celltrion Healthcare (1.78%), and Alteogen (0.63%). Meanwhile, HLB (-4.71%), Kakao Games (-4.57%), SK Materials (-1.00%), and Pearl Abyss (-0.24%) declined.