Decline Despite Rebound Buying in Secondary Battery Stocks
KOSDAQ Index Also Closes Down 0.65%
The KOSPI index closed lower for the fifth consecutive trading day as foreigners and institutions recorded net selling dominance.
On the 8th, the KOSPI index closed at 2,573.98, down 6.73 points (0.26%) from the previous trading day. The index opened at 2,598.29, up 17.58 points (0.68%), but turned downward and fell as low as 2,568.15. Individuals were the sole net buyers with approximately 555.5 billion KRW, while foreigners and institutions were net sellers with about 138.3 billion KRW and 441.5 billion KRW, respectively.
Among the top market capitalization stocks, POSCO Holdings rose 6.42%, LG Energy Solution 2.14%, POSCO Future M 1.82%, and Hyundai Motor 0.21%. Conversely, Naver (NAVER) fell 4.90%, SK Hynix 2.71%, Samsung Electronics 1.31%, Samsung SDI 0.49%, and Samsung Biologics 0.38%. LG Chem remained flat.
By sector, Medical Precision (-2.93%), Textiles & Apparel (-2.09%), Services (-2.04%), Pharmaceuticals (-0.88%), and Construction (-0.86%) recorded weakness. In contrast, Steel & Metals (4.11%), Distribution (2.42%), Insurance (1.50%), and Electric & Gas Utilities (0.96%) rose.
Seokhwan Kim, a researcher at Mirae Asset Securities, said, "Although there was rebound buying in secondary battery stocks that had plunged the previous day, the KOSPI showed weakness for five consecutive trading days due to foreign selling mainly in large-cap stocks such as semiconductors and internet companies. Ahead of the U.S. inflation data release, the won-dollar exchange rate rose further, leading to won depreciation."
On the day, the won-dollar exchange rate rose 9.5 KRW from the previous day to 1,315.7 KRW. This is the highest closing level since June 30. The depreciation of the yuan led to won weakness.
China's exports last month amounted to $281.76 billion (approximately 369.7 trillion KRW), down 14.5% year-on-year, marking a decline for the third consecutive month, raising concerns about a slowdown in the Chinese economy. Additionally, international credit rating agency Moody's downgraded the credit ratings of several U.S. regional banks including Webster Financial, sparking unease around small and medium-sized U.S. banks.
Furthermore, U.S. President Joe Biden signed the "U.S.-Taiwan Initiative on 21st Century Trade Implementation Act," aimed at strengthening trade with Taiwan, which, coupled with China's continued military pressure on Taiwan, highlighted geopolitical risks, adding to the burden.
The KOSDAQ index closed at 892.34, down 5.88 points (0.65%) from the previous session. It showed an upward trend breaking above the 900 mark but then reversed and the decline widened. Individuals and foreigners bought approximately 12.7 billion KRW and 24.4 billion KRW respectively, while institutions were sole sellers with about 34.5 billion KRW.
Among the top market capitalization stocks, POSCO DX rose 9.38%, JYP Ent. 2.06%, and EcoPro 1.03%. Conversely, Celltrion Pharm fell 2.29%, HLB 1.79%, Pearl Abyss 1.10%, Celltrion Healthcare 0.74%, SM Entertainment 0.72%, L&F 0.69%, and EcoPro BM 0.29%.
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