Foreigners' 'Fate' Retreats to KOSPI 2750 Level

KOSPI Shows Mixed Trends, Closes Slightly Lower
Power Equipment and Defense Stocks Rise, Some Hit Record Highs
"Focus on Individual Market Trends by Earnings"

The KOSPI index plunged to the 2750 level due to a selling spree by foreign investors.

[Image source=Yonhap News]

On the 24th, the KOSPI index closed at 2758.71, down 15.58 points (0.56%) from the previous trading day. The KOSPI index opened at 2755.5, down 18.79 points (0.68%) from the previous day, but buying interest flowed in after the opening, pushing it above the previous closing price (2774.29) and reversing to an upward trend. However, selling pressure emerged in the afternoon, causing the index to reverse downward again and eventually close slightly lower.

By investor type, individuals bought 239.7 billion KRW, institutions bought 39.3 billion KRW, while foreigners sold a net 268.8 billion KRW.

By sector, pharmaceuticals (3.06%), medical precision instruments (1.36%), and food and beverages (0.68%) showed strength. Steel and metals (-2.20%), construction (-1.18%), electrical and electronics (-1.12%), machinery (-1.10%), and finance (-1.01%) were weak.

370 stocks rose, 491 stocks fell, and 72 stocks were unchanged. Among the top 10 stocks by market capitalization, Samsung Electronics, which reportedly passed the quality verification test for supplying the 4th generation high-bandwidth memory (HBM3) to Nvidia for the first time, fell 2.26%. This is interpreted as a reaction to a Reuters report stating that while the 4th generation passed, the 5th generation has not yet met the standards. Meanwhile, SK Hynix closed up 1.71%. Samsung Biologics (4.13%) showed the highest gain among the top 10 by market cap. KB Financial Group (-4.19%) was the weakest.

Defense stocks known as 'Trump theme stocks' such as Hanwha Aerospace (4.01%) and Hyundai Rotem (3.45%) hit all-time highs. Another defense affiliate of Hanwha Group, Hanwha Systems (9.88%), closed with a nearly double-digit gain. HD Hyundai Electric (5.64%), the leading power equipment stock that posted an 'earnings surprise' (better-than-expected results) in its earnings announcement the previous day, also reached an all-time high.

Lee Jaewon, a researcher at Shinhan Investment Corp., said, "The downside is being supported, but the upside is also limited due to uncertainty surrounding the U.S. presidential election," adding, "The importance of company-specific earnings is becoming more prominent."

The KOSDAQ index closed at 814.25, up 2.13 points (0.26%).

By investor type, individuals and institutions were net buyers of 46.2 billion KRW and 18.9 billion KRW respectively, while foreigners sold 56.9 million KRW.

701 stocks rose, 849 stocks fell, and 108 stocks were unchanged. Among the top market cap stocks, Alteogen (6.84%) and Hugel (13.07%) were strong. Enchem (-3.71%) and HLB (-2.89%) closed weaker.