KOSPI Maintains Slight Decline Amid Cautious Sentiment... Tesla Theme 'Secondary Battery' Shows Strength

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] On the 5th, the domestic stock market showed a sideways trend ahead of the earnings season. However, stocks expected to see significant earnings improvements or those with specific themes showed strong performance.

The KOSPI index stood at 2,754.27, down 3.63 points (0.13%) from the previous day as of 1:30 PM. The KOSPI started slightly higher but turned downward shortly after the opening, fluctuating around the 2,750 level.

Institutions led the decline by net selling 255.8 billion KRW, and foreigners also recorded net sales of 26.9 billion KRW. Individuals bought 283.4 billion KRW net, preventing further declines.

Following news that Tesla Chairman Elon Musk owns shares in Twitter, Tesla's stock price surged in the US market yesterday, leading to a simultaneous rally in domestic secondary battery stocks.

Samsung SDI rose 2.05%, slightly less than earlier in the session, and LG Energy Solution was up 1.71%. LG Chem also jumped 2.09%. Large-cap stocks such as NAVER (0.74%), Samsung Biologics, Kakao (1.42%), and Hyundai Motor (0.84%) showed modest gains.

On the other hand, semiconductor-related stocks remained weak ahead of Samsung Electronics' earnings announcement on the 7th. Samsung Electronics, which had risen slightly early in the session, turned downward during trading and was priced at 69,200 KRW. SK Hynix also fell 0.43% to 116,500 KRW.

Han Ji-young, a researcher at Kiwoom Securities, said, "The continued net selling by foreigners amid high macroeconomic uncertainty has had a strong impact." She added, "After the earnings announcements of major companies such as Samsung Electronics and LG Electronics scheduled for this week, there is a possibility of a rebound in large-cap stocks as expectations for the earnings season build."

In the KOSDAQ market, EcoPro BM showed a strong gain of over 5%, and L&F and Cheonbo displayed slight gains, indicating an upward trend in secondary battery component stocks.

Game stocks such as Pearl Abyss (1.54%), Kakao Games (0.51%), and Wemade (2.42%) also rose. However, bio stocks like Celltrion Healthcare (-0.31%), Celltrion Pharm (-0.52%), and HLB (-0.32%) continued to show slight declines.

At the same time, the KOSDAQ index rose 3.22 points (0.34%) to 950.54. Individuals were net buyers of about 1.9 billion KRW, while foreigners and institutions bought net amounts of 6.9 billion KRW and 4.1 billion KRW, respectively.

By sector, the paper and wood industry showed the largest gains in the KOSPI market, rising 2.76%, and also surged 5.02% in the KOSDAQ market. This was thanks to recent news of a sharp rise in pulp prices. In particular, Moorim SP hit the upper price limit during the session but gave up some gains afterward, while Shinpoong Paper and Moorim Paper rose more than 10%.

Conversely, as prospects for Ssangbangwool's acquisition of Ssangyong Motor weakened, Ssangbangwool affiliates Mirae I&G and KH E&T plunged more than 10%. Ssangbangwool, which had surged for three consecutive trading days, showed a decline early in the session but rebounded to record a 2% gain.

Lee Jin-woo, head of investment strategy at Meritz Securities, said, "Recently, the market has been less influenced by the US stock market." He added, "We are in a situation beyond macro issues, but negative factors such as rising international oil prices persist, so company-specific issues are important at this time."