Philadelphia Semiconductor Index Rise Boosts SK Hynix by 4.6%
The KOSPI ended the session flat despite net buying by foreigners, as weak Chinese economic indicators and concerns over the U.S. debt ceiling negotiations weighed on the market.
On the 16th, the KOSPI closed at 2480.24, up 0.04% (0.89 points) from the previous trading day. The index opened higher at 2494.40, up 0.61% (15.05 points), but turned downward in the afternoon as institutional investors sold off. Looking at investor trends, foreigners were net buyers with purchases worth 226.1 billion KRW, while individuals and institutions were net sellers with 126 billion KRW and 57 billion KRW respectively.
Early in the session, the KOSPI rose about 0.7%, supported by gains in the Philadelphia Semiconductor Index. However, the index declined after the release of weaker-than-expected Chinese economic data for April and growing concerns over the U.S. debt ceiling negotiations. China's April industrial production was reported at 5.6%, falling short of the market expectation of 10.9%, while retail sales came in at 18.4%, below the forecast of 21%. Fixed asset investment also missed expectations, recording 4.7% against a projected 5.7%.
Lee Kyung-min, a researcher at Daishin Securities, said, "Contrary to expectations, the recovery momentum in China has slowed, causing some retreat in confidence regarding the recovery direction. Net selling by foreigners and institutions was concentrated in the automobile sector, which dragged the index down."
By sector, food and beverages (1.34%), electrical and electronics (1.02%), and machinery (0.82%) showed the largest gains. Within food and beverages, Nongshim and Binggrae rose more than 7.9% and 6.4% respectively, buoyed by strong earnings. In the electrical and electronics sector, SK Hynix rose 4.6%, while LX Semicon (2.1%), DB HiTek (1.5%), and Samsung Electronics (1.4%) also advanced.
Among other large-cap stocks, LG Energy Solution (-0.92%), Samsung SDI (-0.45%), Hyundai Motor (-2.64%), Kia (-3%), and NAVER (-2%) declined, while Samsung Biologics (0.13%) and LG Chem (0.58%) posted gains.
The KOSDAQ index closed at 816.75, up 0.27% (2.22 points) from the previous day. The index opened at 818.96, up 0.54% (4.43 points), but gains slowed in the afternoon, finishing with a 0.3% increase. Investor trends showed foreigners and institutions sold stocks worth 65.5 billion KRW and 80.6 billion KRW respectively, while individuals were net buyers with 140 billion KRW.
Entertainment stocks stood out in the market, with JYP Ent. up 20.8%, YG Entertainment up 9.4%, and SM Entertainment up 6.6%. JYP Ent.'s strong first-quarter earnings and the upcoming U.S. girl group development project expected to be unveiled in the first half of the year are seen as drivers for further stock price gains.
Among the top market cap stocks in the KOSDAQ, EcoPro BM and EcoPro rose 2.46% and 5.76% respectively, while L&F increased by 2.24%. Conversely, Celltrion Healthcare (-1.77%), Celltrion Pharm (-0.25%), and Kakao Games (-1.29%) declined.
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