'Rollercoaster' KOSPI, Pressure from Worsening Investor Sentiment in Secondary Battery Sector (Comprehensive)

Worsening Investor Sentiment in Secondary Battery Sector Weighs on Index
Tesla Earnings Concerns and Domestic Secondary Battery Companies' Poor Performance
Intraday Break Below 2600... Institutions and Individuals Maintain Net Buying

"Negative Impact Related to LG Ensol's Listing Will Continue"

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] The KOSPI is experiencing a rollercoaster ride. Although it briefly fell below the 2600 mark due to foreign selling during the session, it is currently maintaining an upward trend as individual and institutional investors increase their buying volume.

As of 10:14 AM on the 28th, the KOSPI stands at 2619.63, up 0.2% (5.14 points) from the previous trading day. The index opened at 2617.87, up 0.13% (3.38 points) from the previous day, showing significant volatility throughout the session. Due to increased foreign selling, the index dropped below 2600 during the session. According to current investment trends, foreigners sold stocks worth 363.7 billion KRW alone, while individuals and institutions bought stocks worth 138.7 billion KRW and 210.9 billion KRW, respectively.

The secondary battery sector weighed on the KOSPI during the session. This was influenced by subdued investor sentiment toward Tesla and the poor performance of domestic secondary battery companies. Despite Tesla reporting an earnings surprise in the Nasdaq market, concerns over earnings slowdown grew due to supply chain disruptions and delays in new car launches, causing an 11% plunge during the session. Looking at secondary battery-related stocks, LG Energy Solution (-6.73%), Samsung SDI (-6.40%), SK Innovation (-2.78%), and SK IE Technology (-11%) all showed significant declines. SK IE Technology announced yesterday through a disclosure that its operating profit last year decreased by about 30% compared to the previous year.

Another burden is that LG Energy Solution, which was listed the day before, has been on a downward trend for two consecutive trading days. The KOSPI, which has a high weighting of LG Energy Solution, showed a significant drop, but the KOSPI 200, which does not include it, showed a relatively better decline compared to the KOSPI. Lee Woong-chan, a researcher at Hi Investment & Securities, said, “The securities firms’ expected market capitalization for LG Energy Solution is 100 trillion KRW, but the current stock price level still exceeds this. While the market has bottomed out after digesting the Federal Open Market Committee (FOMC) and LG Energy Solution’s listing issues, a rapid rebound will be difficult.”

Among the top market capitalization stocks, Samsung Electronics is currently up 1.12% at 72,100 KRW. SK Hynix (4.41%), Samsung Biologics (2.11%), LG Chem (3.77%), Hyundai Motor (2.14%), and Kakao (0.61%) rose, while Hyundai Mobis (-2.14%) and Hyundai Motor (-0.44%) declined.

At the same time, the KOSDAQ index is down 0.42% (3.55 points) from the previous trading day, standing at 845.68. The KOSDAQ opened at 852.57, up 0.39% (3.34 points) from the previous day, but soon turned downward.

Among the top market capitalization stocks, Celltrion Healthcare (2.67%), HLB (2.35%), Celltrion Pharm (2.78%), and Seegene (4.75%) rose, while EcoPro BM (-6.96%), Pearl Abyss (-0.64%), L&F (-5.31%), Kakao Games (-0.46%), and Wemade (-13%) declined.