KOSPI Ends Steady at 2350 Amid Caution Ahead of Chairman Powell's Speech

Foreigners and Institutions Net Buying, 2 Consecutive Trading Days Above 2350 Level

[Asia Economy Reporter Kwangho Lee] The KOSPI closed slightly higher after fluctuating following a decline at the start of trading. This was due to heightened caution ahead of the speech by Jerome Powell, Chairman of the U.S. Federal Reserve (Fed).

On the 10th, the KOSPI closed at 2,351.31, up 1.12 points (0.05%) from the previous trading day. The rise in secondary battery stocks led the index upward in the morning, but the index remained flat as foreign net buying was limited. By investor type, foreigners and individuals sold net amounts of 1.9 billion KRW and 298.9 billion KRW respectively, while institutions purchased 296.9 billion KRW.

[Image source=Yonhap News]

By sector, construction (2.06%), textiles and apparel (1.90%), and securities (0.70%) showed strength, while pharmaceuticals (-1.30%) and telecommunications (-0.96%) declined.

Among the top market capitalization stocks, LG Energy Solution and Samsung SDI closed up by over 2%, while LG Chem (0.80%) and SK Hynix (0.58%) also rose. Samsung Electronics (-0.49%), Samsung Biologics (-1.60%), and NAVER (-1.78%) closed lower.

Lee Kyung-min, a researcher at Daishin Securities, explained, "Caution is increasing ahead of Chairman Powell’s speech at 11 p.m. Korean time. In particular, the recent easing of monetary policy optimism due to the slowdown in U.S. wage growth may retreat again after the speech."

The KOSDAQ index closed at 696.05, down 5.16 points (0.74%) from the previous day. In the KOSDAQ market, foreigners and institutions sold net amounts of 65.2 billion KRW and 216.7 billion KRW respectively, while individuals bought a net 289.3 billion KRW.

By sector, pharmaceuticals (-2.45%), internet (-1.39%), distribution (-1.34%), software (-1.09%), and other services (-1.03%) declined. Sectors that rose included transportation (3.29%), publishing (1.58%), computer services (1.41%), broadcasting services (0.7%), and telecommunications equipment (0.59%).

Most of the top market capitalization stocks closed lower. Kakao Games plunged over 3%, while Celltrion Healthcare, HLB, Pearl Abyss, and Celltrion Pharm also fell more than 2%.