KOSPI Recovers Above 2500 Level... "Caution on Increased Volatility"

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The KOSPI and KOSDAQ indices, which started lower, experienced volatility throughout the day, at one point falling over 1% before recovering.

As of 10:34 a.m. on the 18th, the KOSPI index was trading at 2502.87, down 0.54% (13.60 points) from the previous trading day. The index opened at 2499.30, down 0.68% (17.17 points), and after falling over 1% during the session, it recovered above the 2500 level.

By investor type, individuals and foreigners were net buyers of 117.5 billion KRW and 67.1 billion KRW respectively, while institutions were net sellers of 188.2 billion KRW.

Among the top 10 companies by market capitalization, only Samsung Electronics (0.50%) and Samsung Biologics (0.80%) recorded gains. LG Energy Solution (-0.55%), SK Hynix (-1.54%), LG Chem (-1.06%), Samsung Electronics Preferred (-0.18%), Samsung SDI (-1.27%), NAVER (-2.33%), Hyundai Motor (-2.11%), and Kakao (-1.12%) all declined.

By sector, only Paper & Wood (1.47%), Food & Beverage (1.10%), and Machinery (0.63%) showed gains, while all other sectors were down. Transportation Equipment (-1.75%) had the largest decline, followed by Medical Precision (-1.74%), Services (-1.44%), Pharmaceuticals (-1.24%), Securities (-1.17%), Transportation & Warehousing (-1.13%), Finance (-1.03%), and Steel & Metals (-0.94%).

At the same time, the KOSDAQ index was at 823.09, down 0.52% (4.33 points). The KOSDAQ opened at 822.71, down 0.57% (4.71 points) from the previous day.

By investor type, only individuals were net buyers with 99.8 billion KRW, while foreigners and institutions were net sellers of 57.7 billion KRW and 35.6 billion KRW respectively.

The top market cap stocks on the KOSDAQ showed mixed performance. L&F (0.94%), HLB (0.11%), Alteogen (0.29%), EcoPro (1.78%), and Cheonbo (0.23%) recorded gains, while Celltrion Healthcare (-2.20%), EcoPro BM (-0.17%), Kakao Games (-2.23%), Pearl Abyss (-1.21%), and Celltrion Pharm (-2.21%) declined.

By sector, only Metals (1.46%) recorded gains. Food & Beverage & Tobacco (-2.27%), Digital Content (-1.61%), Paper & Wood (-1.55%), IT Software (-1.20%), Broadcasting Services (-1.16%), Telecommunications & Broadcasting Services (-1.01%), Internet (-0.99%), and Computer Services (-0.97%) all declined.

Han Ji-young, a researcher at Kiwoom Securities, analyzed, "Despite the July FOMC minutes, influenced by the decline in the U.S. stock market including the Philadelphia Semiconductor Index (-2.5%), our market is expected to show a weak trend. Considering recent popular themes such as solar power, shipbuilding, secondary batteries, and defense, short-term rotation due to valuation burdens may occur, so caution is needed regarding further volatility expansion."