Impact of Weak Chinese Economic Indicators... KOSPI Closes Down Around 0.4%

Foreigners and institutions net sold 63 billion and 187.3 billion KRW respectively
KOSDAQ index closes up 0.7%... Semiconductor stocks strong

The KOSPI closed lower, affected by weak Chinese economic indicators. The KOSDAQ index fell more than 0.7% during the session but ended higher due to net buying by individuals and foreigners.

[Image source=Yonhap News]

On the 15th, the KOSPI closed at 2608.54, down 0.4% (10.54 points) from the previous trading day. The KOSPI started the day up 0.39%, but ended in a decline as net selling by foreigners and institutions intensified. Foreigners and institutions sold stocks worth 63 billion KRW and 187.3 billion KRW respectively, while individuals were the sole net buyers with purchases totaling 234.8 billion KRW.

In the early session, the index reflected the results of the June Federal Open Market Committee (FOMC) meeting, but the announcement of weak Chinese May real economy indicators led the KOSPI to close lower. China's May retail sales and fixed asset investment increased by 12.7% and 4% year-on-year respectively, falling short of market expectations of 13.7% and 4.4%. The youth unemployment rate also continued to rise from 20.4% in April to 20.8%. Lee Kyung-min, a researcher at Daishin Securities, said, “Expectations for the momentum of China's economic stimulus measures remain valid, supporting the market's downside,” adding, “The strength and visibility of China's stimulus measures will have a significant impact on the domestic stock market.”

By sector, transportation and warehousing (0.55%), insurance (0.13%), and machinery (0.08%) showed strength. Among individual stocks, Hyundai Glovis rose more than 4%, reflecting expectations of entry into the battery raw materials business. Among large-cap stocks, Samsung Electronics (-0.56%), LG Energy Solution (-0.68%), Samsung Biologics (-0.77%), Samsung SDI (-0.55%), Hyundai Motor (-0.65%), and Kia (-0.84%) declined, while SK Hynix (0.17%), LG Chem (0.42%), and NAVER (0.65%) rose.

The KOSDAQ index closed at 878.04, up 0.71% (6.21 points) from the previous day. The KOSDAQ started strong with a rise of over 0.6%, but fell more than 0.7% amid heavy net selling by institutions. Looking at investor trends, individuals and foreigners bought stocks worth 139.1 billion KRW and 20.2 billion KRW respectively, while institutions were the sole net sellers with sales totaling 126.5 billion KRW.

By sector, financials (4.61%), semiconductors (3.71%), and IT hardware (2.35%) showed the largest gains. Small and mid-cap semiconductor stocks showed strong momentum recently driven by artificial intelligence (AI). Among individual stocks, PSK Holdings (17%), TSE (15%), Gigavis (14%), Hideep (12%), and Simtek (11%) showed strong gains. Among large-cap stocks, EcoPro BM and EcoPro rose more than 1.7% and 6.45% respectively. Celltrion Healthcare (0.14%), JYP Ent. (1.48%), Celltrion Pharm (1.98%), and Osstem Implant (0.11%) rose, while HLB (-0.89%), Pearl Abyss (-1.92%), and Kakao Games (-2.05%) declined.