"KOSPI Narrows Decline Amid Foreign Buying Inflow"
The KOSPI index closed slightly lower due to net selling by individuals and institutions.
On the 5th, the KOSPI index closed at 2,582.18, down 2.37 points (0.09%) from the previous trading day. The index started the day at 2,578.91, down 5.64 points (0.22%), but the decline narrowed thereafter. Individuals and institutions sold a net amount worth approximately 29 billion KRW and 148.3 billion KRW respectively, while foreigners bought a net amount worth 148.5 billion KRW.
Among the top market capitalization stocks, POSCO Future M (2.49%), POSCO Holdings (1.19%), LG Energy Solution (1.13%), LG Chem (1.02%), Samsung SDI (0.98%), Naver (0.24%), and SK Hynix (0.17%) rose in that order. Meanwhile, Samsung Electronics (-0.70%) and Hyundai Motor (-0.37%) declined, and Samsung Biologics remained flat.
By sector, textiles and apparel (1.69%), steel and metals (0.80%), medical precision (0.68%), and paper and wood (0.32%) showed strength, while securities (-1.14%), construction (-0.96%), transportation and warehousing (-0.78%), transportation equipment (-0.66%), and non-metallic minerals (-0.49%) declined.
The KOSDAQ index closed at 921.48, up 2.32 points (0.25%) from the previous session. Individuals and foreigners bought approximately 9.1 billion KRW and 30.3 billion KRW respectively, while institutions sold about 25.7 billion KRW.
Among the top market capitalization stocks, Rainbow Robotics (7.82%), Celltrion Healthcare (0.62%), and JYP Ent. (0.38%) rose. POSCO DX remained flat. EcoPro (-2.97%), HLB (-1.74%), SM (-0.60%), Pearl Abyss (-0.51%), L&F (-0.47%), and EcoPro BM (-0.33%) declined in that order.
Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "After starting lower, the KOSPI narrowed its losses due to foreign buying inflows, and the KOSDAQ turned positive with strength in software and robotics-related stocks. However, the lack of leading sectors during the session and reduced trading volume meant the upward momentum was insufficient."
Meanwhile, the USD/KRW exchange rate closed at 1,330.60 KRW, up 10.8 KRW from the previous day. China's services Purchasing Managers' Index (PMI) fell to 51.8 from 54.1 the previous month, marking the lowest level in eight months.
Following the release of China's services PMI, the offshore yuan-dollar exchange rate widened its gains, trading at 7.2905 yuan. Additionally, on the same morning, the People's Bank of China set the yuan-dollar reference rate at 7.1783 yuan, down 0.0003 yuan from the previous session. The Korean won weakened in line with the yuan, an Asian currency, leading to an increase in the USD/KRW exchange rate.
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