Foreigners' 'Palja' Leads KOSPI to Close Down 0.7%... Exchange Rate Surpasses 1310 Won

After Surpassing 2400, Market Turns Bearish
KOSDAQ Hits 800 on Strength in Semiconductor and Pharmaceutical Stocks

The KOSPI index fell to the 2370 level as foreigners showed a selling dominance. The won-dollar exchange rate closed higher, surpassing 1310 won, due to the weakening of the yuan.

[Image source=Yonhap News]

On the 20th, the KOSPI index closed at 2379.20, down 16.49 points (0.69%) from the previous trading day. The index started at 2391.87, down 3.82 points (0.16%), then turned upward and surpassed the 2400 level. It surged to 2405.99 but then reversed and widened its losses. Foreigners net sold about 204.8 billion won, while individuals and institutions bought approximately 89.2 billion won and 106.1 billion won, respectively.

Among the top market capitalization stocks, Kia fell the most, down 2.74%. This was followed by LG Chem (-2.71%), Samsung Electronics (-1.79%), LG Energy Solution (-1.63%), Hyundai Motor (-0.85%), Samsung SDI (-0.83%), and SK Hynix (-0.36%). Naver (NAVER) and Kakao rose 1.77% and 1.33%, respectively, and Samsung Biologics also increased by 0.50%.

By sector, insurance (-2.24%), non-metallic minerals (-1.58%), electrical and electronics (-1.49%), medical precision (-1.36%), transportation equipment (-1.08%), and manufacturing (-0.94%) declined. In contrast, telecommunications (1.74%), paper and wood (1.07%), electricity and gas (1.04%), textiles and apparel, pharmaceuticals (0.62%), and services (0.58%) rose.

On the same day, the won-dollar exchange rate closed at 1310.1 won, up 7.9 won from the previous trading day. UBS agreed to acquire Credit Suisse (CS), which was engulfed in crisis rumors, and major central banks took measures to strengthen liquidity supply, leading to an opening at 1302.0 won, down 0.2 won. However, due to the weakening yuan, it rebounded and rose to as high as 1313.5 won during the session.

Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "Despite the US stock market decline last week due to the rekindling of US-origin financial risks and the UBS-CS acquisition agreement over the weekend, uncertainty over this week's Federal Open Market Committee (FOMC) interest rate decision expanded, dampening investor sentiment. The won-dollar exchange rate also started lower but rose more than 10 won during the session due to increased foreign selling pressure, expanding the burden."

The KOSDAQ index closed higher due to strength in semiconductor and pharmaceutical stocks. It ended at 802.20, up 4.81 points (0.60%) from the previous trading day. The index surpassed the 800 mark for the first time since the 9th. Individuals were the sole net buyers with 134.4 billion won, while foreigners and institutions net sold about 38.1 billion won and 60.4 billion won, respectively.

Among the top market capitalization stocks, HLB rose 2.79%, and Celltrion Healthcare increased 2.34%. EcoPro BM, which started the day lower following news of a prosecution investigation, rose 2.00%, and EcoPro, which had fallen more than 4.00%, also rose 0.88%. SM also increased by 0.27%. On the other hand, L&F fell 2.18%, and Kakao Games (-2.05%), Pearl Abyss (-0.23%), and Celltrion Pharm (-0.10%) also recorded declines.