Closing price at 2497.09 in January... Failed to reclaim 2500
Institutions net sold 6.2512 trillion KRW in KOSPI in January
'Low PBR' stocks continue strong on policy expectations
KOSDAQ breaks below 800 for the first time in over 2 months
The KOSPI index closed slightly lower after failing to reclaim the 2,500 level.
On the 31st, the KOSPI index closed at 2,497.09, down 1.72 points (-0.07%) from the previous trading day. It continued its decline for the second consecutive trading day following the previous day’s -0.07% drop. Starting at 2,487.90, the KOSPI reached an intraday high of 2,502.45 early in the session before hovering around the 2,490 level throughout the day.
By investor type, individuals sold 79 billion KRW, and institutions sold 5.6 billion KRW. Foreigners were the sole buyers, purchasing 85.2 billion KRW. Overall, market participants remained cautious ahead of the Federal Open Market Committee (FOMC) results, which were announced early on the 1st Korean time. Looking back at January as a whole, institutions recorded net sales totaling 6.2512 trillion KRW. In contrast, individuals and foreigners recorded net purchases of 2.8635 trillion KRW and 3.4989 trillion KRW, respectively, during the same period.
Among the top market capitalization stocks, shares of Kia (5.00%), Hyundai Motor (2.42%), and Samsung C&T (6.40%) rose. Notably, the financial sector (2.45%) and insurance sector (3.91%) showed prominent gains, driven by expectations for the 'Corporate Value-Up Program' to be implemented by financial authorities starting February. Banking and finance-related stocks, often trading below a price-to-book ratio (PBR) of 1, are considered beneficiaries. Among insurance stocks, Samsung Life Insurance (5.32%), DB Insurance (4.39%), Hyundai Marine & Fire Insurance (3.83%), and Samsung Fire & Marine Insurance (3.53%) all posted gains exceeding 3%. Jeju Bank (29.50%) closed at the daily limit among financial stocks.
Labor Gil, a researcher at Shinhan Investment Corp., said, "Today’s market was characterized by a wait-and-see mood amid anticipation of the FOMC, with trading volume around 3 trillion KRW, indicating a lack of supply and demand." He added, "In the absence of clear leading sectors, a sector rotation market continued. This week, low PBR sectors led the market, and foreign net buying centered on automobiles and defense stocks contributed to the rise."
The KOSDAQ index closed at 799.24, down 19.62 points (-2.40%). This marked the first time in over two months since November 17 last year (799.06) that the KOSDAQ closed below the 800 level.
By investor type, foreigners sold 83 billion KRW, and institutions sold 122.7 billion KRW. Meanwhile, individuals were the sole buyers, purchasing 212.6 billion KRW. Among the listed stocks, 334 closed higher, 1,236 closed lower, and 60 remained unchanged.
Among the top market capitalization stocks, all of the top 10 stocks closed lower. Alteogen (-4.33%), Rino Industrial (-5.51%), Rainbow Robotics (-5.82%), and Enchem (-5.65%) all posted declines exceeding 4%.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
