Individual Net Purchase of 86 Billion KRW
Sharp Intraday Yuan Exchange Rate Surge
"No Rebound Point Found Due to Tightening and Recession Concerns"
[Asia Economy Reporter Minji Lee] The KOSPI closed higher after four trading days. Although it turned downward amid a sharp rise in the won-dollar exchange rate during the session, it ended the day on an upward trend thanks to net buying by individual investors.
On the 6th, the KOSPI closed at 2410.02, up 0.26% (6.34 points) from the previous trading day. The KOSPI started the day at 2409.72, up 0.25% (6.04 points) from the previous day, appearing to continue its upward momentum, but it fell below the 2400 level as the exchange rate surged during the session.
In the financial market that day, investor sentiment sharply contracted as the won-dollar exchange rate surpassed the 1370 won level during the session. Even institutions, which had been net buyers in the morning, turned to net selling, causing a downturn. According to investor trends that day, individuals alone bought stocks worth 86 billion won, while foreigners and institutions sold stocks worth 79.1 billion won and 14.3 billion won, respectively. The won-dollar exchange rate started at 1369.0 won, down 2.4 won from the previous day due to China's decision to lower the foreign exchange reserve requirement ratio, but closed at 1371.7 won, up 0.3 won at the end of the session.
Lee Kyung-min, a researcher at Daishin Securities, said, "The exchange rate surged due to the reversal of offshore yuan weakness," adding, "Currently, the KOSPI is struggling to find a rebound point amid the double burden of tightening pressure and economic uncertainty following Federal Reserve Chairman Jerome Powell's strong tightening remarks at the Jackson Hole meeting." The yuan-dollar rate exceeded 6.94 yuan that day, which is analyzed to reflect the impact of the loan prime rate (LPR) cut aimed at stabilizing the economy.
By sector, textile and apparel (4.03%), paper and wood (1.95%), and chemicals (1.5%) showed gains. Textile and apparel attracted attention for its undervaluation appeal, with Jeil Industries (7.8%) and F&F (6.9%) showing upward trends.
Among the top market capitalization stocks, LG Energy Solution (0.1%), SK Hynix (0.77%), Samsung Biologics (0.12%), LG Chem (0.49%), Hyundai Motor (0.5%), and Kia (0.49%) rose, while Samsung Electronics traded unchanged at 57,100 won. On the other hand, NAVER (-0.42%) and Samsung SDI (-1.06%) declined.
On the same day, the KOSDAQ index closed at 777.35, up 0.77% (5.92 points) from the previous trading day. It showed stronger performance compared to the KOSPI as foreign and institutional funds flowed in. In the market that day, individuals alone sold stocks worth 110.2 billion won, while foreigners and institutions bought stocks worth 64.9 billion won and 55.3 billion won, respectively.
Among the top market capitalization stocks, Celltrion Healthcare (0.14%), L&F (0.87%), Kakao Games (0.6%), Pearl Abyss (1.09%), Celltrion Pharm (0.68%), and EcoPro (0.64%) rose, while EcoPro (-0.14%), HLB (-0.96%), Alteogen (-1.66%), and Studio Dragon (-1.62%) declined.
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