The KOSPI index closed lower for the second consecutive trading day as foreigners and institutions showed a net selling bias.
On the 1st, the KOSDAQ index closed at 2,569.17, down 7.95 points (0.31%) from the previous trading day. The index started at 2,572.56, down 4.56 points (0.18%), briefly turned upward, but then declined further, widening the losses. Individual investors were the sole net buyers with approximately 355.8 billion KRW, while foreigners and institutions sold about 8.2 billion KRW and 381.9 billion KRW worth respectively. Institutions showed a net selling bias for six consecutive trading days.
Among the top market capitalization stocks, LG Energy Solution fell the most, down 2.50%. This was followed by Kia (-1.98%), Samsung SDI (-1.39%), Hyundai Motor (-1.25%), LG Chem (-0.87%), and Samsung Electronics (-0.70%). Naver (2.26%), SK Hynix (1.57%), Samsung Biologics (0.51%), and POSCO Holdings (0.28%) rose.
By sector, telecommunications (-1.69%), securities (-1.14%), transportation and warehousing (-0.97%), transportation equipment (-0.94%), and retail (-0.88%) showed weakness. Meanwhile, medical precision instruments (4.53%), electric and gas utilities (1.60%), pharmaceuticals (1.28%), paper and wood products (1.19%), and services (0.61%) rose.
The KOSDAQ index closed higher. It ended at 863.78, up 6.84 points (0.80%) from the previous trading day. Individuals and institutions were net sellers of approximately 26.2 billion KRW and 15 billion KRW respectively, while foreigners were net buyers of about 55.7 billion KRW.
Among the top market capitalization stocks, JYP Ent. (4.34%), Celltrion Healthcare (3.65%), Celltrion Pharm (2.35%), HLB (2.30%), Kakao Games (1.16%), Osstem Implant (0.21%), and EcoPro BM (0.20%) rose. L&F (-1.48%), Pearl Abyss (-1.10%), and EcoPro (-0.18%) declined. SM Entertainment plunged 7.20% after EXO members Baekhyun, Xiumin, and Chen abruptly notified the agency of contract termination.
Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "Weak domestic export indicators in May and the U.S. stock market decline, mainly due to profit-taking in tech stocks, weighed on the KOSPI. However, the KOSDAQ index maintained gains due to strength in the entertainment and pharmaceutical biotech sectors."
The Ministry of Trade, Industry and Energy announced the May export-import trends on the day, reporting exports of $52.24 billion, down 15.2% compared to the same month last year. Monthly exports have decreased year-over-year for eight consecutive months since last October. This is the longest continuous export decline since December 2018 to January 2020.
The won-dollar exchange rate closed at 1,321.6 KRW, down 5.6 KRW from the previous day. The U.S. House of Representatives passed the federal government debt ceiling agreement on May 31 (local time). As the bill is likely to pass the Senate as well, the Korean won strengthened.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
