Among the Top 20 Market Cap, All but 3 Decline
Defense Stocks Surge... Hanwha Aerospace Hits Intraday Record High
KOSDAQ Ends Higher Led by Entertainment and Gaming Sectors
The KOSPI index closed lower for the first time in four trading days due to the impact of the U.S. Consumer Price Index (CPI).
On the 14th, the KOSPI index closed at 2,620.42, down 29.22 points (1.10%) from the previous trading day. This marked the first decline in four trading days since the 6th. The KOSPI opened at 2,609.60 and recorded an intraday low of 2,601.99 early in the session, then fluctuated between 2,610 and 2,620 throughout the day.
By investor type, institutions sold 535.2 billion KRW, switching from net buying to net selling after four trading days. Individuals bought 407.8 billion KRW, and foreigners purchased 109.4 billion KRW. The shock from the U.S. CPI results, which exceeded expectations, extended to the domestic stock market. The U.S. January CPI was 3.1%, surpassing the market forecast of 2.9%.
By sector, all sectors declined except Medical Precision (0.23%), Services (0.13%), Non-metallic Minerals (0.08%), and Machinery (0.02%). Among the top 20 by market capitalization, only three stocks?Kia (0.34%), Kakao (0.37%), and POSCO Future M (3.44%)?rose, while the rest fell.
Amid the overall downward trend, the defense sector stood out with strong performance. Leading domestic defense stocks such as Hanwha Aerospace (7.65%), LIG Nex1 (7.45%), Hanwha Systems (4.10%), Hyundai Rotem (1.04%), and Korea Aerospace Industries (2.35%) all closed higher. Notably, Hanwha Aerospace hit a record high of 155,000 KRW during the session. On the same day, the Ministry of Employment and Labor held a joint declaration with Hanwha Aerospace, Korea Aerospace Industries, and Gyeongsangnam-do to promote win-win cooperation in the aerospace manufacturing industry.
Lee Woong-chan, a researcher at Hi Investment & Securities, said, "In the first half of this year, the Korean stock market will remain in a box range, while the U.S. market will rise once and then stagnate, waiting for a signal of interest rate cuts in the second quarter." He added, "The domestic market faces risks such as dividend payments at the end of March, exhaustion of policy momentum for stock market stimulus after the general election, and the possible resumption of short selling in June." He further noted, "We hope conditions will be created for interest rate cuts in the second quarter, and this is a period of temporary pause."
Unlike the KOSPI, the KOSDAQ index closed higher at 853.30, up 8.15 points (0.96%).
By investor type, foreigners sold 67 billion KRW, and institutions sold 58.5 billion KRW. Meanwhile, individuals were the sole buyers with 126.1 billion KRW. A total of 1,007 stocks closed higher, 531 stocks declined, and 100 stocks remained unchanged.
The long-struggling entertainment sector finally showed strong gains. JYP Ent. (3.49%), SM (3.61%), YG Entertainment (1.65%), Cube Entertainment (5.03%), and CJ ENM (2.35%) all closed higher. The gaming sector, part of the same content industry, also showed positive momentum. Pearl Abyss (3.05%), Wemade (6.71%), and Kakao Games (1.22%) ended the day with gains. Among the top market cap stocks, HPSP (3.88%), EO Technics (3.23%), and Soulbrain (4.92%) posted increases exceeding 3%.
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