KOSPI Ends Slightly Lower After Recovering Some Losses

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] On the 28th, the KOSPI ended the session slightly lower after partially recovering from early losses due to buying pressure from individuals and institutions.

On this day, the KOSPI closed at 2,729.56, down 0.02% (0.42 points) from the previous trading day. The KOSPI opened at 2,721.22, down 0.32% (8.76 points) from the previous day, showing a nearly 1% decline, but narrowed the losses in the afternoon.

Lee Kyung-min, a researcher at Daishin Securities, said, "In the early session, the KOSPI showed weakness reflecting the Shanghai lockdown measures and the Federal Reserve's big step (50bp) rate hike. During the session, as the Chinese market recovered losses, foreign investors showed net buying in futures and institutions showed net buying in cash stocks, leading the KOSPI to narrow its losses."

Looking at investment trends, individuals and institutions bought stocks worth 194.3 billion KRW and 76.1 billion KRW respectively. Conversely, foreign investors sold stocks worth 273.3 billion KRW alone. Foreign investors increased their cash sales as the won-dollar exchange rate declined due to uncertainties surrounding Russia and Ukraine.

In the KOSPI market that day, there was a mixed reaction to earnings. The cosmetics sector, including LG Household & Health Care (-3.69%) and Amorepacific (-1.61%), declined due to concerns over earnings drops. On the other hand, S-Oil surged more than 6% in one day, supported by strong refining margins.

By sector, insurance and telecommunications showed strength. The insurance sector rose on expectations that the rate hike could be larger, with Hanwha Life (4.6%), Samsung Fire & Marine Insurance (3.4%), Meritz Fire & Marine Insurance (3.2%), Samsung Life Insurance (2.2%), and Lotte Insurance (2.1%) all showing gains. Among telecommunications, SK Telecom rose 1.75%, positively influenced by expectations of quarterly dividends.

Looking at the top market capitalization stocks, most showed declines. Samsung Electronics (-0.14%), LG Energy Solution (-0.57%), NAVER (-0.45%), LG Chem (-0.57%), and Samsung SDI (-1.48%) all fell, while SK Hynix and Kakao ended the day at the same prices as the previous day.

The KOSDAQ index closed at 927.11, down 0.81% (7.58 points) from the previous trading day. Looking at investment trends, individuals alone bought stocks worth 276.1 billion KRW, while foreign investors and institutions sold stocks worth 88.5 billion KRW and 156.1 billion KRW respectively.

The top market capitalization stocks on the KOSDAQ also closed lower. Celltrion Healthcare (-0.31%), EcoPro BM (-2.75%), L&F (-1.30%), Pearl Abyss (-4.94%), Celltrion Pharm (-1.82%), and Wemade (-2.62%) all declined.