KOSPI Sees Growing Caution Ahead of Powell's Speech... Drops Below 2600 Level

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On the 21st, the KOSPI index fell below the 2600 mark as caution expanded ahead of U.S. Federal Reserve (Fed) Chair Jerome Powell's congressional testimony.

As of 9:36 a.m., the KOSPI index was trading at 2593.70, down 0.43% (11.21 points) from the previous trading day. The index opened the session at 2599.19, down 0.22% (5.72 points), and extended its losses.

By investor type, individual investors were the only ones net buying stocks worth 199.8 billion KRW. Foreigners and institutions sold stocks worth 174.4 billion KRW and 26.2 billion KRW, respectively. Foreigners have shown net selling dominance for three consecutive trading days including today.

On this day, the KOSPI showed a limited movement amid increased cautious sentiment ahead of Fed Chair Powell's congressional testimony. Powell is scheduled to appear before Congress on the 21st and 22nd (local time) to deliver the semiannual monetary policy report.

Han Ji-young, a researcher at Kiwoom Securities, said, "Recently, major stock markets including Korea and the U.S. have entered a consolidation phase due to limited additional upward momentum," adding, "Since Powell is expected to make hawkish remarks (favoring monetary tightening) in Congress, the domestic stock market is also likely to show limited price movement amid cautious sentiment."

Among the top 10 KOSPI stocks by market capitalization, most showed a downward trend.

These include Samsung Electronics (-0.56%), LG Energy Solution (-0.36%), Samsung Biologics (-0.39%), LG Chem (-1.08%), Samsung Electronics Preferred (-0.17%), and Hyundai Motor (-0.20%).

At the same time, the KOSDAQ index was up 0.18% (1.58 points) at 887.99. The KOSDAQ opened at 887.26, up 0.10% (0.85 points) from the previous day, and briefly surpassed the 890 mark early in the session, reaching 890.94.

In the KOSDAQ market, individuals and institutions were net buyers of stocks worth 25.1 billion KRW and 23.1 billion KRW, respectively, while foreigners were net sellers of 45.1 billion KRW.

Among the top KOSDAQ stocks by market capitalization, EcoPro BM (2.10%), EcoPro (2.48%), L&F (0.20%), and JYP Ent. (0.50%) recorded gains, while Celltrion Healthcare (-0.43%), HLB (-0.93%), Pearl Abyss (-0.77%), Celltrion Pharm (-0.13%), and Kakao Games (-0.14%) declined.