The KOSPI fell more than 2% due to simultaneous net selling by foreigners and institutions. Amid ongoing geopolitical risks originating from the Middle East, the KOSPI was dragged down further by a sharp rise in exchange rates and interest rates following strong U.S. economic indicators.
On the 16th, the KOSPI closed at 2,609.63, down 60.80 points (2.28%) from the previous trading day.
That day, the index opened at 2,644.17, down 0.98% from the previous trading day. With intensified net selling by foreigners and institutions, the index dropped to 2,601.45, threatening the 2,600 level. However, it slightly recovered losses toward the end of the session before closing.
Ji-won Kim, a researcher at KB Securities, said, "The index closed with a sharp drop of over 2% due to a surge in interest rates and exchange rates following strong U.S. economic data, ongoing geopolitical risks in the Middle East, and large-scale futures selling by foreigners." He added, "The dollar-won exchange rate touched 1,400 won during the session, rising more than 40 won over the past four trading days. The verbal intervention by foreign exchange authorities was conducted as the 1,400 won level was breached for the first time in 17 months." He continued, "The sharp depreciation of the won led to nearly 14,000 contracts of foreign futures selling, driving the index decline."
By investor type, foreigners and institutions net sold 274.6 billion won and 293.4 billion won, respectively. In contrast, individuals net bought 549.5 billion won.
By sector, all sectors fell except for Food and Beverages (0.14%). Medical Precision plunged 4.27%, while Machinery, Transportation and Warehousing, and Electrical and Electronics dropped more than 3%. Manufacturing, Steel and Metals, Securities, Electricity and Gas, and Insurance fell more than 2%. Pharmaceuticals, Chemicals, Construction, and Paper and Wood declined more than 1%.
Most of the top market capitalization stocks also declined. Samsung Electronics closed at 80,000 won, down 2,200 won (2.68%) from the previous trading day. SK Hynix fell 4.84%, and Celltrion and LG Chem dropped more than 3%. POSCO Holdings and KB Financial also declined 2%, while LG Energy Solution, Samsung Biologics, NAVER, Samsung SDI, and Hyundai Mobis fell more than 1%. On the other hand, Hyundai Motor and Kia saw slight gains.
On the day, 124 stocks rose on the KOSPI, including Daedong Electronics, Deoksungwoo, and Hancom Lifecare, which hit the upper price limit, while 776 stocks fell without any hitting the lower price limit. Twenty-eight stocks remained unchanged.
The KOSDAQ closed at 832.81, down 19.61 points (2.30%) from the previous trading day.
By investor type, foreigners and institutions net sold 156.6 billion won and 10.1 billion won, respectively. Meanwhile, individuals net bought 185.7 billion won.
All sectors declined. Semiconductors, Machinery Equipment, Telecommunications Equipment, and Computer Services fell more than 3%. General Electrical and Electronics, Non-metallic Minerals, Pharmaceuticals, Internet, Other Manufacturing, Metals, Software, IT Components, Telecommunications Services, and Textiles and Apparel dropped more than 2%. Medical Precision Instruments, Transportation Equipment Parts, and Food, Beverages, and Tobacco declined more than 1%.
Among the top market capitalization stocks, EcoPro BM closed at 225,000 won, down 7,500 won (3.29%) from the previous trading day. Rino Industrial plunged 6.09%, while HPSP and Rainbow Robotics fell more than 5%. Celltrion Pharm, EO Technics, and Dongjin Semichem declined more than 4%, and HLB and Hugel dropped 2-3%. On the other hand, Enchem rose 4.90%, and Sinsung Delta Tech also jumped 1.46%.
In the KOSDAQ market, 234 stocks rose, including three stocks that hit the upper price limit such as Shinjin SM and S Bio Medics, while 1,341 stocks fell without any hitting the lower price limit. Forty-nine stocks remained unchanged.
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