KOSPI Closes Down 0.19% Amid Heavy Institutional Selling... 2nd Battery Sector Remains Strong

The KOSPI, which started slightly higher on the 18th, turned lower in the early session due to continued institutional selling for the second day and closed down near the 2570 level.

On the day, the KOSPI index closed at 2571.09, down 0.19% (4.82 points) from the previous trading day. The index opened at 2582.23, up 0.25% (6.32 points), hitting a year-to-date high, but turned lower early in the session and dropped to as low as 2557.19 during the day. Afterwards, foreign investors shifted from selling to buying, narrowing the decline.

By investor type, institutions sold stocks worth 664.6 billion KRW, pulling the index down. In contrast, individuals and foreigners bought stocks worth 364.8 billion KRW and 341.3 billion KRW, respectively.

In the Seoul foreign exchange market, the won-dollar exchange rate started at 1318.5 won, up 7.4 won from the previous closing price, fluctuated between 1316.5 and 1321.0 won, and closed at 1318.6 won.

The market saw a stock-specific volatile session, with continued concentration of demand in some secondary battery stocks.

During the session, news that China’s GDP growth rate for the first quarter of this year was 4.5%, higher than market expectations, boosted shares related to China’s reopening (resumption of economic activities).

Cosmetics stocks such as Tony Moly (7.29%), Amorepacific (5.18%), LG Household & Health Care (5.10%), and Cosmax (4.92%) showed notable gains, while distribution stocks like Hotel Shilla (3.59%) and Shinsegae (2.14%) also rose. Airline stocks including Air Busan (4.99%), Jin Air (4.06%), and Jeju Air (2.46%) advanced as well.

[Image source=Yonhap News]

Lee Kyung-min, a researcher at Daishin Securities, said, "Large-cap stocks in the secondary battery value chain, including POSCO Group stocks, recorded steady gains, helping to curb further declines in the KOSPI. From a supply-demand perspective, despite the rebound in the won-dollar exchange rate, foreign investors turned to net buying, supporting the rise in secondary battery stocks such as Samsung SDI, LG Energy Solution, and LG Chem."

Among the top 10 stocks by market capitalization, Samsung Electronics (0.46%), LG Energy Solution (0.17%), LG Chem (2.48%), and Samsung SDI (1.46%) closed higher, while SK Hynix (-1.02%), Samsung Biologics (-2.34%), Hyundai Motor (-1.85%), and POSCO Holdings (-1.85%) ended lower.

By sector, textiles and apparel (2.58%), insurance (1.49%), chemicals (1.04%), transportation and warehousing (0.59%), and food and beverage (0.58%) closed higher, whereas pharmaceuticals (-1.99%), electric and gas (-1.95%), machinery (-1.92%), construction (-1.30%), transportation equipment (-1.28%), and services (-1.27%) closed lower.

The KOSDAQ index closed at 909.02, down 0.05% (0.48 points) from the previous session.

The index opened at 910.75, up 0.14% (1.25 points), then fluctuated in mixed territory before ending slightly lower.

In the KOSDAQ market, both foreigners and institutions showed selling pressure, with net sales of 131.8 billion KRW and 107.5 billion KRW, respectively. Individuals were net buyers with 265.1 billion KRW.

Among the top 10 stocks by market capitalization, the top three?EcoPro BM (0.68%), EcoPro (6.32%), and L&F (3.01%)?all closed higher. The others, including Celltrion Healthcare (-2.55%), HLB (-2.35%), Celltrion Pharm (-2.08%), Kakao Games (-1.80%), JYP Ent. (-0.57%), Osstem Implant (-0.05%), and Pearl Abyss (-2.81%), closed lower.

By sector, finance (4.20%), textiles and apparel (2.25%), IT components (1.54%), information devices (1.18%), metals (1.09%), and machinery equipment (0.96%) rose, while construction (-2.24%), semiconductors (-1.98%), software (-1.83%), and other manufacturing (-1.83%) declined.

Trading value for the day was recorded at 13.9086 trillion KRW on the KOSPI market and 16.3651 trillion KRW on the KOSDAQ market.