KOSPI Ends Slightly Lower
CD and CP Yields Reach Highest Levels of the Year
[Asia Economy Reporter Ji Yeon-jin] The KOSPI closed slightly lower on the 25th despite buying by foreigners and institutions.
The KOSPI ended the day at 2,235.07, down 1.09 points (0.05%) from the previous day. The index opened at 2,237.04, up 0.88 points (0.04%) from the previous day, and rose as high as 2,253.24 at one point, but retreated to a slightly weak zone in the afternoon as buying by foreigners and institutions slowed. In the KOSPI market, foreigners and institutions net bought 79.5 billion KRW and 60.4 billion KRW respectively, while individuals net sold 134.6 billion KRW.
Although the US stock market rose the previous day on expectations of a slowdown in the Federal Reserve's tightening, which restored investor sentiment in the early session, bond yields rose across the board in the afternoon, triggering anxiety toward risk assets.
In the short-term money market on the day, commercial paper (CP) rose to 4.45%, and certificates of deposit (CD) also rose to 3.93%, hitting the highest point of the year. In the morning bond market, the 1-year government bond yield rose by 0.025 percentage points, followed by rebounds in the 3-year (0.057 percentage points) and 10-year (0.023 percentage points) bonds.
In the Seoul foreign exchange market, the won-dollar exchange rate opened at 1,444.0 won, up 4.3 won from the previous day's closing price, and reached a high of 1,444.2 won early in the session, setting a new high for the year. However, the rise narrowed afterward, closing at 1,433.1 won.
The yuan weakened due to concerns over China's 'Xi Jinping 3rd term' leadership system, causing the won-dollar exchange rate to jump as well. However, near the yearly high, intervention volumes presumed to be from foreign exchange authorities and dollar sales from exporters emerged, turning the rate downward. Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "The appointment of the new UK prime minister eased political uncertainty, and the US stock market rose on expectations of major corporate earnings announcements, leading both the KOSPI and KOSDAQ to start higher."
He explained, "However, volatility increased as the index turned lower during the session due to reduced foreign buying along with volatility in the Chinese stock market."
Among the top market capitalization stocks in the KOSPI market, Samsung Electronics (0.35%), LG Energy Solution (0.39%), SK Hynix (1.85%), and Samsung Biologics (1.26%) showed strength. Hyundai Motor (0.62%) and Kia (1.53%), which announced third-quarter earnings, as well as representative growth stocks in the domestic market NAVER (0.91%) and Kakao (0.72%) also rose slightly, but LG Chem (-4.00%) and POSCO Holdings (-3.43%) showed weakness. POSCO Holdings' selling pressure is analyzed to have intensified due to concerns that the impact of the Pohang plant flooding accident may continue into the fourth quarter.
The KOSDAQ index closed at 688.85, up 0.35 points (0.05%) from the previous trading day. In the KOSDAQ market, foreigners net sold 92.8 billion KRW, while individuals and institutions net bought 66.0 billion KRW and 21.1 billion KRW respectively.
Among the top market capitalization stocks in the KOSDAQ, Celltrion Healthcare (3.20%), HLB (0.64%), Celltrion Pharm (1.24%), and Chunbo (0.94%) rose, but EcoPro BM (-3.27%), L&F (-3.36%), EcoPro (-3.57%), Kakao Games (-1.05%), Pearl Abyss (-0.36%), and Reno Industrial (-0.21%) declined.
Kolon TissueGene, which resumed trading after 3 years and 5 months, closed at 20,850 KRW, hitting the upper price limit (29.91%) compared to the opening price.
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