Semiconductor Support Law Concerns Cap Gains
KOSDAQ Ends Lower Amid Profit-Taking Selling Pressure
The KOSPI closed higher due to foreign buying pressure. It ended slightly higher, supported by the strength of steel stocks expected to benefit from China's reopening. In contrast, the KOSDAQ closed lower amid selling pressure from both foreign and institutional investors.
On the 2nd, the KOSPI closed at 2,427.85, up 0.62% (15.00 points) from the previous trading day. The KOSPI opened at 2,414.61, up 0.07% (1.76 points), and during the session rose as much as 1.15% (27.74 points) to 2,440.59, but its upward momentum weakened in the latter part of the session.
After the market opened, both foreign and institutional investors were buyers, but it appears that institutions switched to selling. Foreign investors alone net purchased 479.7 billion KRW. On the other hand, individual and institutional investors net sold 406.7 billion KRW and 88.1 billion KRW, respectively. In the futures market, foreign investors net sold 343.7 billion KRW, while individuals and institutions net bought 168.1 billion KRW and 95.1 billion KRW, respectively.
The top 10 stocks by market capitalization showed mixed trends. POSCO Holdings rose 5.97%, recording the highest gain of the day. The steel industry is a representative cyclical sector, particularly sensitive to the economy and steel prices in China, the world's largest steel producer and consumer. The stock price was driven by expectations of a rebound from China's reopening and the reflected benefits from the suspension of steel production in T?rkiye.
Following were Kia +3.32%, LG Energy Solution +2.29%, Samsung SDI +2.01%, and Hyundai Motor +1.25%. Meanwhile, SK Hynix -1.45%, NAVER -1.20%, LG Chem -0.29%, and Samsung Biologics -0.13% closed lower.
The rise in Hyundai Motor and Kia was attributed to strong sales performance in the U.S. Both companies set monthly sales records for four consecutive months last month. Hyundai Motor and Kia announced that their wholesale sales in the U.S. last month totaled 117,903 units, with Hyundai Motor recording 57,044 units and Kia 60,859 units.
The KOSDAQ closed at 787.19, down 0.56% (4.41 points) from the previous trading day. It opened at 793.63, up 0.26% (2.03 points), but weakened and turned downward as supply and demand conditions deteriorated.
In particular, the decline reversed as institutions expanded their selling. Early in the session, foreign and institutional investors net sold 53.4 billion KRW and 27.5 billion KRW, respectively, but throughout the day, they sold a total of 64.1 billion KRW and 229.5 billion KRW. Despite individuals net buying 328.5 billion KRW, it was insufficient to lift the index.
Most of the top 10 stocks by market capitalization closed lower. L&F fell 4.39%, and Pearl Abyss dropped 4.12%, showing notable declines. Following were EcoPro BM -3.97%, EcoPro -3.68%, and Kakao Games -2.54%. Osstem Implant closed flat, and SM ended 0.31% higher at 128,000 KRW.
Jae-hyuk Han, a researcher at Hana Securities, said, "The market showed a cautious tone with a slight gain as the negative sentiment from weak indicators and a sharp rise in interest rates in the U.S. stock market continued." He evaluated, "The KOSPI was limited in its rise due to concerns over the semiconductor support law, which weighed on semiconductor stocks, but the index was supported by strength in steel and secondary battery sectors."
He added, "The KOSDAQ declined due to profit-taking from AI (artificial intelligence) and some secondary battery-related stocks that had led the previous rally, as well as the effects of rotation in the market."
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