[Asia Economy Reporter Lee Jung-yoon] On the 6th, the KOSPI index fell more than 1% as foreigners and institutions showed a combined selling dominance. The KOSPI index broke below the 2400 level for the first time in about a month since the 8th of last month.
On this day, the KOSPI index closed at 2393.16, down 26.16 points (1.08%) from the previous trading day. The index started at 2397.70, down 21.62 points (0.89%), and fell to 2390.20. However, it later reduced the decline and even rose to 2416.88, but as selling pressure from foreigners and institutions continued, it fell below the 2400 level. Individuals net bought about 379.6 billion KRW, while foreigners and institutions net sold 96 billion KRW and 307.7 billion KRW respectively.
Among the top market capitalization stocks, most showed a downward trend except Samsung SDI (1.29%) and Samsung Biologics (0.60%). Kakao and Naver (NAVER) recorded declines of over 3%. Following were Samsung Electronics (-1.82%), LG Chem (-1.44%), Kia (-0.76%), Hyundai Motor (-0.60%), and LG Energy Solution (-0.53%). SK Hynix remained flat.
By sector, all sectors except pharmaceuticals (0.31%) showed red. Textile & Apparel (-2.89%), Steel & Metals (-2.25%), Construction (-2.09%), Transportation & Warehousing (-2.04%), Chemicals & Services (-1.94%), and Medical Precision (-1.61%) declined in order.
Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "Investment sentiment was dampened as expectations arose that the Federal Reserve's hawkish stance would continue following the release of solid U.S. economic indicators."
According to the U.S. Institute for Supply Management (ISM), the non-manufacturing (services) Purchasing Managers' Index (PMI) for November was 56.5, surpassing last month's 54.4. The market initially expected 53.7, so it exceeded expectations. Factory orders in October also increased by 1% compared to the previous month, exceeding the forecast of 0.7%.
Lee Kyung-min, a researcher at Daishin Securities, said, "Concerns have emerged that the final U.S. interest rate could be higher than expected amid the surprise in the U.S. November ISM services index."
On this day, the won-dollar exchange rate closed at 1318.8 won, up 26.2 won from the previous day's closing price. Closing in the 1310 won range was the first in four trading days, and the fluctuation compared to the previous day was the largest since the 11th of last month. The sharp rise in the won-dollar exchange rate is evaluated to have expanded the selling pressure from foreigners.
The KOSDAQ index recorded a nearly 2% decline. The index closed at 719.44, down 13.88 points (1.89%) from the previous trading day. It fell below the 720 level for the first time in six trading days based on the closing price. Individuals net bought about 160.6 billion KRW, but foreigners and institutions sold about 69.5 billion KRW and 79.6 billion KRW respectively.
Among the top market capitalization stocks, all stocks declined. Pearl Abyss, EcoPro, and Lino Industrial fell more than 3%. Following were Celltrion Pharm (-2.26%), EcoPro BM (-2.16%), Kakao Games (-2.08%), Chunbo (-1.84%), L&F (-1.83%), HLB (-1.24%), and Celltrion Healthcare (-0.78%).
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
