KOSPI Falls 0.47%, KOSDAQ Rises 0.29%
Focus on US Economic Data Release and Fed President's Remarks Tonight
[Asia Economy Reporter Minji Lee] The KOSPI closed the session in a downward trend as selling pressure from institutional investors increased.
On the 18th, the KOSPI closed at 2,368.32, down 0.47% (11.07 points) from the previous trading day. Although the KOSPI started the day higher, it recorded a decline of over 0.6% in the morning ahead of the Bank of Japan (BOJ) monetary policy meeting announcement, but the decline narrowed in the afternoon.
The BOJ monetary policy meeting, the biggest event in the stock market that day, maintained the existing policy. When it was confirmed that the yield curve control (YCC) policy, which the market was concerned about, would be maintained and that there would be no base rate hike, the Japanese stock market surged over 2%. During the session, the yen weakened, causing the won-dollar exchange rate to rise intraday, but the increase was reversed by the end of the day due to the weakening yuan, closing at 1,237.4 won, down 1.3 won from the previous day.
On the KOSPI market that day, institutions sold stocks worth 215.3 billion won. Foreign investors maintained net selling in the morning but ended up buying more stocks, resulting in a net purchase of 72.2 billion won. Individuals bought stocks worth 148.8 billion won. Since the beginning of the year, the stock market has shown a sharp rise, and it appears that selling pressure has increased mainly from institutions. Institutional selling was concentrated on leading semiconductor stocks. Among the top market capitalization stocks, Samsung Electronics fell 0.98%, and SK Hynix dropped 1.05%, showing significant declines.
Other stocks closed either unchanged or down compared to the previous day’s closing prices: LG Energy Solution (0%), Samsung Biologics (0%), LG Chem (-0.97%), Samsung SDI (-0.49%), Hyundai Motor (-0.9%), and Kakao (0.32%).
Meanwhile, the KOSDAQ index rose 0.29% (2.04 points) to close at 711.75. Although the rise was lower than earlier in the session due to institutional selling, it ended the day on an upward trend. In the market that day, foreign investors and individuals net purchased stocks worth 9.7 billion won and 23.7 billion won, respectively, while institutions sold stocks worth 22.7 billion won.
Among the top market capitalization stocks on the KOSDAQ market, EcoPro BM (-0.5%), Celltrion Healthcare (-0.35%), Kakao Games (-1.63%), and HLB (-1.91%) declined, while L&F (1.32%), Pearl Abyss (0.79%), Rino Industrial (0.62%), and Studio Dragon (2.55%) rose.
Meanwhile, from tonight, events that could influence the stock market direction are expected to continue. The U.S. December retail sales and industrial production data are scheduled to be released, both expected to show a larger decline compared to the previous month. Following this, speeches by regional Federal Reserve Bank presidents are planned, which is likely to increase market sensitivity to monetary policy. Kyungmin Lee, a researcher at Daishin Securities, said, “Recently, some Federal Reserve Bank presidents have advocated the need to raise the base rate above 5%, and it is expected that this stance will be reiterated this time as well,” adding, “The poor U.S. real economy indicators will stir concerns about the economy.”
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