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[Asia Economy Reporter Ji Yeon-jin] On the 7th, the domestic stock market, which started lower after three days, is quickly reducing its intraday losses.
As of 10:27 a.m., the KOSPI index stood at 2,233.00, down 4.86 points (0.22%) from the previous day. Foreigners and institutions showed net selling of approximately 112.3 billion KRW and 60.6 billion KRW respectively, while individuals defended the index decline by net buying about 173.8 billion KRW.
In the early trading session, the market started down nearly 1% following the previous day’s decline in the New York stock market due to Federal Reserve (Fed) officials’ hawkish remarks, and Samsung Electronics’ weak third-quarter earnings dampened risk asset investment sentiment.
However, despite Samsung Electronics’ earnings slowdown, the outlook for the semiconductor industry improving next year has been highlighted, attracting bargain buying and significantly reducing the decline.
Samsung Electronics announced that its consolidated sales for the third quarter of this year reached 76 trillion KRW, with an operating profit of 10.8 trillion KRW. This represents a 2.73% increase in sales compared to the same period last year, but operating profit fell by 31.73%.
Samsung Electronics rebounds from early 1% decline
Because of this, Samsung Electronics showed a decline of over 1% in early trading. However, it successfully rebounded during the session and is currently slightly up (0.18%). SK Hynix, which also started lower, rebounded during the session and is rising over 1%.
LG Energy Solution is also showing a 0.94% gain, and LG Chem and Samsung SDI are recording slight gains. Samsung Biologics reversed from a slight gain in early trading to a decline, while Hyundai Motor and Kia are experiencing nearly 2% losses.
NAVER fell 2.99%, while Kakao dropped sharply by 6.57%. Particularly, Kakao Group stocks showed broad weakness today, with Kakao Pay plunging over 10%, Kakao Bank down 8.89%, and Kakao Games falling more than 6%.
Earlier, DB Financial Investment lowered Kakao Bank’s target price from 24,600 KRW to 16,200 KRW, citing a sharp slowdown in loan growth due to the real estate market downturn. The investment rating was maintained at ‘underperform,’ effectively a sell recommendation.
The KOSDAQ index fought around the 700 level from early trading. As of 10:27 a.m., the index was trading at 702.15, down 3.86 points (0.55%) from the previous day. Individuals bought about 142.1 billion KRW, while foreigners and institutions sold about 86.5 billion KRW and 52.5 billion KRW respectively.
EcoPro BM and L&F are rising, and Lino Industrial is up more than 1%, supported by the semiconductor equipment sector’s upward trend.
However, other large-cap stocks are weak. While EcoPro is slightly down, Celltrion Healthcare is down nearly 2%. HLB and Celltrion Pharm are falling over 1%. Pearl Abyss declined 2.40%.
Han Ji-young, a researcher at Kiwoom Securities, said, "Tonight’s U.S. employment data release is causing cautious trading. Recently, semiconductor stocks have priced in bad news in advance, and despite today’s poor earnings, inflows during the session reflect recognition of a price bottom."
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