Institutional 'Palja' Foreigners & Individuals 'Saja'
'Jungguksaek' Heavy Companies 'Bulgidung'
KOSDAQ, Entertainment, AR, Metaverse Related Stocks Rise
The KOSPI collapsed just before the September opening price due to a selling offensive by institutions. Only one trading day remains in September, which has seen negative returns for three consecutive years. Whether the KOSPI will close the month with a gain is a key point of interest in the market.
On the 27th, the KOSPI closed at 2,649.78, down 21.79 points (0.82%) from the previous session. That day, the KOSPI opened at 2,674.58, up 3.01 points (0.11%) from the previous close, buoyed by warm "external winds" such as U.S. economic indicators signaling a soft landing and expectations of a significant economic rebound in China due to large-scale stimulus measures. Shortly after opening, it reached a high of 2,681.45, raising hopes of recovering the September opening price (2,683.30). However, it eventually turned downward in the morning. In the afternoon, the KOSPI battled around the 2,660 level but succumbed to selling pressure near the close, falling below 2,650 to end the day.
By investor type, foreigners continued their buying streak for the second day, net purchasing 262.2 billion KRW. Individuals also contributed with net purchases of 178.7 billion KRW. However, institutions led the decline by net selling 429 billion KRW.
417 stocks rose, 459 stocks fell, and 60 stocks remained unchanged. Among the top 10 stocks by market capitalization, SK Hynix (1.60%), LG Energy Solution (0.24%), KB Financial Group (3.20%), and POSCO Holdings (0.91%) rose, while the other six declined. Despite a positive breeze from Micron, Samsung Electronics fell 0.77%, and Samsung Biologics dropped 6.27%, breaking below the 1 million KRW mark and losing its status as a "king stock."
Demand concentrated on companies with a strong "China color." Cosmetics stocks with high sales proportions in China, AmorePacific and LG Household & Health Care, rose 3.68% and 5.36%, respectively. Fashion company F&F, with over 30% of sales from China, increased by 5.65%. F&F is a company deeply committed to China, having expanded its business there even as foreign companies withdrew amid the economic downturn. The textile and apparel sector, to which F&F belongs, recorded the highest sectoral gain of the day at 2.98%. Hyungji Elite, actively pursuing local business in China, also hit the daily upper limit.
Kang Jin-hyuk, a researcher at Shinhan Investment Corp., said, "After a rapid rise driven by Micron's earnings and China's economic stimulus, the market is taking a breather. Stocks sensitive to China, such as petrochemicals and cosmetics, continued to strengthen, while shipbuilding, a representative beneficiary of high oil prices and high exchange rates, weakened amid the exchange rate holding steady in the low 1,300 KRW range."
The KOSDAQ index closed at 774.49, down 0.60% (4.69 points) from the previous day.
By investor type, individuals net bought 169.9 billion KRW, while foreigners and institutions net sold 116.7 billion KRW and 42.9 billion KRW, respectively.
706 stocks rose, 858 stocks fell, and 112 stocks remained unchanged. Among the top 10 stocks by market capitalization, all declined except for Ecopro BM (0.42%) and Classys (3.13%). Notably, entertainment stocks showed gains. SM Entertainment (2.57%), JYP Ent. (2.41%), and YG Entertainment (7.22%) all rose. Securities firms attribute this to expectations of a full-scale earnings recovery starting in the fourth quarter, inclusion in the value-up index (SM, JYP), and still-present, albeit weaker, connections with China as positive factors. Additionally, stocks related to augmented reality (AR) and the metaverse were active, buoyed by Meta's launch of the AR new product "Orion." Maxst and Giantstep closed at the daily upper limit. Vernect (14.60%), NP (15.81%), Alchera (12.95%), Sconex (12.82%), Newflex (12.58%), and Esconex (10.41%) all finished with double-digit gains. F&Guide, which has been volatile this month due to a management dispute, swinging between daily upper and lower limits, closed at the lower limit for two consecutive trading days.
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