KOSPI Drops Below 2500 in One Day Due to Micron-Related Negative Factors... Down 0.66%

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jaehee] Following the negative impact from Micron the previous day, all three major U.S. indices closed lower, leading to a decline at the start of the Korean stock market.

As of 10:43 a.m. on the 10th, the KOSPI index stood at 2,486.90, down 0.66% (16.56 points) compared to the previous trading day. The KOSPI opened at 2,493.70, down 0.39% (9.76 points), and the decline has been widening since.

Looking at investor trends, foreigners and institutions sold stocks worth 154.8 billion KRW and 1.2 billion KRW respectively, while individuals purchased stocks worth 133.4 billion KRW.

The domestic market was significantly affected by Micron’s downward revision of its earnings guidance announced in June, which caused the Philadelphia Semiconductor Index to drop 4.57%. Additionally, with the U.S. Consumer Price Index (CPI) announcement scheduled for the 10th (local time), increased caution and the possibility of weakness in the secondary battery sector contributed to the decline in the index.

Seo Sang-young, Head of Media Content at Mirae Asset Securities, analyzed, "The decline in the Philadelphia Semiconductor Index and the drop in electric vehicle-related stocks, which may lead to weakness in the secondary battery sector, will act as a burden on our stock market. The extent of market fluctuations will likely be determined by the continuity of foreign investor flows."

By sector, construction (4.31%), machinery (1.11%), steel and metals (0.97%), non-metallic minerals (0.78%), electricity and gas (0.64%), and telecommunications (0.43%) showed gains. Conversely, service (-1.50%), electrical and electronics (-1.45%), textiles and apparel (-1.32%), pharmaceuticals (-1.12%), manufacturing (-0.76%), and securities (-0.70%) sectors declined.

Among the top 10 stocks by market capitalization, all except Samsung SDI (0.33%) were down. Samsung Electronics (-1.67%), LG Energy Solution (-0.22%), SK Hynix (-2.94%), Samsung Biologics (-1.55%), LG Chem (-1.79%), Samsung Electronics Preferred (-1.99%), NAVER (-0.57%), Hyundai Motor (-0.26%), and Kakao (-2.28%) all fell.

The KOSDAQ index at the same time was at 826.18, down 0.90% (7.47 points) from the previous trading day. The KOSDAQ opened at 829.29, down 0.52% (4.36 points).

Investor trends showed that individuals alone purchased stocks worth 103.7 billion KRW, while foreigners and institutions sold stocks worth 70.3 billion KRW and 26.6 billion KRW respectively.

By sector, metals (1.88%), construction (1.40%), paper and wood (1.31%), general electrical and electronics (0.40%), chemicals (0.20%), and other manufacturing (0.15%) were on the rise, whereas semiconductors (-2.22%), entertainment and culture (-2.05%), software (-1.90%), other services (-1.67%), telecommunications equipment (-1.65%), and telecommunications services (-1.65%) declined.

Among the top market capitalization stocks on KOSDAQ, only EcoPro BM (0.97%), L&F (0.98%), and Chunbo (1.95%) recorded gains. EcoPro remained flat, while the other top 10 market cap stocks all declined: Celltrion Healthcare (-1.65%), HLB (-2.41%), Kakao Games (-1.87%), Pearl Abyss (-0.98%), Celltrion Pharm (-1.11%), and Alteogen (-4.05%).