Institution 'Palja' Weakness Weighs on KOSPI... Starts at 2510 Level

Samsung Electronics, Hynix, and Others Decline
European Stocks Close Lower Amid Rate Cut Concerns

The KOSPI showed weakness on the 16th, falling to the 2510 level in early trading.

On the 11th, when the first Monetary Policy Committee meeting of the new year was held, the KOSPI index started with a slight rise but fluctuated between declines and gains. Employees are working in the dealing room at Hana Bank in Myeongdong, Seoul. Photo by Heo Younghan younghan@

As of 9:41 a.m. that day, the KOSPI dropped 8.34 points (0.33%) from the previous day's closing price to 2517.65.

The index opened at 2516.27, down 9.72 points (0.38%) from the previous trading day, and then fell to 2510.65.

In the securities market, individual investors are net buyers of 172.7 billion KRW. Institutions and foreigners are net sellers of 59.8 billion KRW and 114.2 billion KRW, respectively.

Among the top market capitalization stocks, Samsung Electronics (-1.08%), SK Hynix (-1.64%), Hyundai Motor (-0.27%), POSCO Holdings (-1.36%), Kia (-0.55%), and LG Energy Solution (-0.88%) are declining, while Samsung Biologics (0.13%) and Celltrion (0.64%) are rising.

By sector, most sectors are showing weakness, including Food and Beverages (-3.44%), Insurance (-1.33%), and Textiles and Apparel (-0.88%), while only Electric and Gas Utilities (2.24%) and Pharmaceuticals (0.05%) are rising.

On the 15th (local time), the U.S. New York Stock Exchange was closed for Martin Luther King Day, while European markets all closed lower. Rising geopolitical tensions in the Middle East, Germany’s GDP contraction, and hawkish remarks (preference for monetary tightening) from European Central Bank (ECB) officials dragged down the markets.

Accordingly, the domestic market is expected to show a limited rebound today.

Han Ji-young, a researcher at Kiwoom Securities, forecasted, "Today, a continued inflow of buying due to perceived excessive declines, a favorable foreign investor supply environment, hawkish comments from ECB officials dismissing the possibility of interest rate cuts, and increased volatility in secondary battery stocks due to L&F’s earnings shock will coexist as upward and downward factors during the session, resulting in a limited rebound."

At the same time, the KOSDAQ index rose 5.59 points (0.65%) from the previous session to 854.12. The index started down 2.32 points (0.27%) at 857.39 but widened its gains afterward.

In the KOSDAQ market, institutions and individuals are net buyers of 28.7 billion KRW and 21.5 billion KRW, respectively, supporting the index. Foreigners are net sellers of 47.4 billion KRW.

Among the top market cap stocks, L&F (4.79%), Celltrion Pharm (1.32%), and Rainbow Robotics (0.81%) are rising, while EcoPro BM (-1.54%), EcoPro (-1.77%), and Alteogen (-0.34%) are falling.