KOSPI and KOSDAQ Close Lower... Dragged Down by Weak Battery Stocks

EcoProBM Drops 10.95%
Semiconductors Lack Momentum, End Slightly Higher
Samsung Electronics +0.54%, SK Hynix +0.92%

Securities company app, stock trading scene. Photo by Hyunmin Kim kimhyun81@

On the 22nd, the KOSPI and KOSDAQ, which started higher, closed lower. While individuals led the selling trend, institutions contributed to the selling pressure on the KOSPI, and foreigners did so on the KOSDAQ. The battery sector plunged, suppressing the upward momentum. The semiconductor sector, which showed strength in the morning, ended with slight gains, causing both major indices to finish in the red.

The KOSPI closed at 2,464.35, down 0.34% (8.39 points) from the previous trading day. It opened at 2,489.57, up 0.68% (16.83 points) from the previous day.

Individuals and institutions sold a net 244 billion KRW and 40.1 billion KRW respectively, pulling the index down. Foreigners were the sole net buyers with 300 billion KRW. In the futures market, only foreigners sold, offloading 357.8 billion KRW. Individuals and institutions bought 222.9 billion KRW and 95.2 billion KRW respectively.

Among the top 10 market capitalization stocks, the trend was mixed. Samsung Electronics and SK Hynix rose modestly by 0.54% and 0.92% respectively. Samsung Biologics +2.99%, Celltrion +4.32%, and NAVER +0.70% closed higher. On the other hand, LG Chem -4.33%, POSCO Holdings -3.86%, and LG Energy Solution -3.00% showed notable declines.

By sector, chemicals fell 2.70%, steel and metals 2.29%, paper and wood 1.48%, construction 1.48%, transportation and warehousing 0.87%, and textiles and apparel 0.79%. Conversely, pharmaceuticals rose 2.73%, electric and gas utilities 1.85%, and medical precision instruments 1.49%.

The KOSDAQ closed at 839.69, down 0.35% (2.98 points) from the previous trading day. It started at 848.87, up 0.74% (6.20 points) from the previous day. Individuals and foreigners sold a net 34.5 billion KRW and 38.2 billion KRW respectively, pulling the index down. Institutions were the sole net buyers with 102.1 billion KRW.

Among the top 10 market capitalization stocks, the weakness in the battery sector was prominent. EcoPro BM, the largest by market cap, fell 10.95% to 248,000 KRW. EcoPro dropped 7.37%, and L&F declined 7.62%.

By sector, general electric and electronics dropped 7.23%, finance 4.94%, transportation 3.31%, paper and wood 3.04%, and food and tobacco 2.77%. Conversely, semiconductors rose 4.42%, computer services 4.01%, and broadcasting services 3.81%.

Lee Kyung-min, a researcher at Daishin Securities, explained, "The KOSPI was still limited at the top as the entire secondary battery value chain, suffering from unfavorable business conditions, recorded weakness."