Ahead of FOMC Minutes Release, KOSPI and KOSDAQ Close Lower

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] Despite individual investors' net buying, the KOSPI and KOSDAQ indices closed lower. This is analyzed to be due to increased cautiousness ahead of the release of the FOMC (Federal Open Market Committee) minutes.

On the 17th, the KOSPI closed at 2,516.47, down 0.67% (17.05 points) from the previous trading day. The index started the day at 2,536.57, up 0.12% (3.05 points) from the previous day and continued its upward trend, but selling pressure from foreigners and institutions increased, causing an intraday decline of over 0.8%.

Lee Kyung-min, a researcher at Daishin Securities, explained, "Even considering the cautious sentiment regarding the FOMC minutes, the KOSPI showed relatively weak performance compared to other Asian markets today," adding, "The absence of upward momentum and increased net selling by foreigners during the day limited the KOSPI's gains." Looking at investment trends, individuals bought stocks worth 153.7 billion KRW, and foreigners also purchased stocks worth 56.8 billion KRW. Institutions were the sole sellers, offloading stocks worth 200.8 billion KRW.

By sector, insurance (0.97%), textiles and apparel (0.88%), electric and gas utilities (0.77%), and securities (0.64%) showed the largest gains. Amid the notable rise in the financial sector, news of rising U.S. natural gas prices led Daesung Energy (4.3%) and Korea Gas Corporation (3.6%) to post gains. Conversely, the transportation equipment sector (-2.21%) was the weakest. This was due to the exclusion of tax benefits for Korean electric vehicles following the passage of the U.S. Inflation Reduction Act, which caused related companies' stock prices to fall.

Among the top market capitalization stocks, Samsung Electronics fell 0.98% from the previous day to 60,400 KRW. LG Energy Solution (-1.52%), Samsung Biologics (-3.76%), LG Chem (-0.6%), Samsung SDI (-0.47%), NAVER (-0.58%), Hyundai Motor (-3.08%), and Kakao (-0.74%) also declined, while SK Hynix rose 0.41%.

On the same day, the KOSDAQ index closed at 827.42, down 0.88% (7.32 points) from the previous trading day. The index started at 834.91, up 0.02% (0.17 points) from the previous day, but selling pressure from foreigners and institutions increased, causing an intraday decline of over 1%. Looking at investment trends, individuals alone bought stocks worth 121.8 billion KRW, while foreigners and institutions sold stocks worth 17.6 billion KRW and 83 billion KRW, respectively.

Among the top market capitalization stocks, Celltrion Healthcare closed at 77,400 KRW, down 1.02% from the previous day. Kakao Games (-1.52%), HLB (-0.46%), Pearl Abyss (-1.20%), Celltrion Pharm (-2.93%), Alteogen (-2.37%), EcoPro (-0.34%), and Chunbo (-0.54%) also declined, while EcoPro BM (0.93%) and L&F (5.21%) rose.