Profit-Taking Underway? KOSPI and KOSDAQ Both Decline Together

[Asia Economy Reporter Son Sunhee] As the stock market generally maintained a positive trend entering the new year, on the 30th, profit-taking by investors led to a simultaneous decline in both the KOSPI and KOSDAQ indices.

On this day, the KOSPI index closed at 2,450.47, down 33.55 points (1.35%) from the previous session. Earlier in the session, it remained steady around the 2,480 level but soon turned downward, falling below the 2,460 mark. During the session, it dropped as low as 2,446.59, closing lower for the first time in six trading days.

On the morning of the 30th, behind an employee who removed their mask in the Hana Bank dealing room in Jung-gu, Seoul, the KOSPI, KOSDAQ indices, and the KRW/USD exchange rate are displayed. 2023.1.30 [Image source=Yonhap News]

Looking at trading trends by investor type, individuals and institutions each net bought 460.1 billion KRW and 16.3 billion KRW respectively, but institutions sold off 412 billion KRW worth of shares.

By sector, all sectors except three?non-metallic minerals (1.68%), paper and wood products (0.11%), and textiles and apparel (0.6%)?declined. The insurance sector fell the most, down 2.86%, followed by transportation and warehousing (-2.66%), steel and metals (-2.04%), finance (-1.99%), and securities (-1.95%).

Among the top 10 companies by market capitalization on the KOSPI, all stocks except LG Energy Solution (0.79%) declined. The 'blue-chip' Samsung Electronics dropped 2.01%, closing at 63,300 KRW.

LG Energy Solution, which marked its first anniversary of listing and allowed the sale of shares held by the employee stock ownership association, raising concerns about an 'overhang' (potential selling pressure), surprisingly closed higher. LG Energy Solution ended the day at 510,000 KRW, up 0.79% from the previous close. Earlier in the morning session, the stock had fallen over 3%, dipping to 490,000 KRW at one point, but reversed to an upward trend in the afternoon.

The KOSDAQ index also closed lower at 738.62, down 2.63 points (0.35%). Individuals net bought 88.5 billion KRW, while foreigners and institutions net sold 26.8 billion KRW and 54.6 billion KRW respectively.

Among the top 10 companies by market capitalization on the KOSDAQ, results were mixed. Stocks such as L&F (0.48%), EcoPro (1.61%), and Rino Industrial (2.43%) rose, while the rest, including the largest KOSDAQ company EcoPro BM (-0.86%), declined.

Despite the overall sluggish market, marketing solutions company 'Obzen,' which was newly listed on the KOSDAQ that day, achieved the so-called 'ttasang' (opening price at double the IPO price followed by hitting the daily upper limit). Obzen's stock surged to the 30.0% price limit early in the session and remained at the upper limit without selling pressure throughout the day. Semiconductor distribution company 'Mirae Semiconductor,' listed on the 27th, also saw a 24.81% surge on this day following its 'ttasang' debut, closing at 19,470 KRW.

Meanwhile, in the Seoul foreign exchange market, the won/dollar exchange rate closed at 1,227.4 KRW per dollar, down 3.9 KRW from the previous day's close. The exchange rate entering the 1,220 KRW range is the first time in about nine months since April 15 of last year (1,229.6 KRW).