KOSPI Closes Down Near 2620... Minimal Impact from Nvidia's Strong Earnings

KOSDAQ Also Ends Slightly Lower

On the 27th, both the KOSPI and KOSDAQ markets closed slightly lower. Despite Nvidia's strong earnings, gains were given back due to simultaneous selling by institutions and foreigners.

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On the day, the KOSPI closed at 2,621.75, down 0.73% from the previous trading day. The KOSPI started lower around the 2,630 level, at one point dropping more than 1% to the 2,610 level, but trimmed losses in the latter part of the session. Institutions and foreigners sold 237.8 billion KRW and 278 billion KRW respectively, while individuals net bought 482.8 billion KRW.

Most sectors showed a decline. The largest drops were seen in healthcare & precision instruments (-2.39%), machinery & equipment (-1.78%), telecommunications (-1.71%), pharmaceuticals (-1.46%), electricity & gas (-1.30%), IT services (-1.02%), and electrical & electronics (-0.97%). Meanwhile, entertainment & culture (2.31%), textiles & apparel (0.75%), distribution (0.71%), and real estate (0.58%) rose.

Among the top 10 stocks by market capitalization, all fell except Kia (0.53%). In particular, Samsung Electronics (-0.53%) and SK Hynix (-1.87%) had expectations raised by Nvidia’s strong Q4 earnings announcement last year, but the impact was limited. Other stocks that closed lower included LG Energy Solution (-0.94%), Samsung Biologics (-0.77%), Hyundai Motor (-2.20%), Celltrion (-3.49%), NAVER (-5.40%), and KB Financial Group (-0.86%).

Ji-won Kim, a researcher at KB Securities, explained, "The much-anticipated Nvidia earnings had a limited impact. Due to the dividend advancement policy, companies that changed their dividend record date to the 28th (financial holding companies, automotive, telecommunications, etc.) saw their stock prices fall, leading to a weakness centered on large-cap stocks."

The KOSDAQ market also closed lower at 770.85, down 0.07% from the previous session. After opening higher at 774.13, it fluctuated throughout the day but maintained a downward trend in the latter part of the session. Foreigners and institutions sold 54.4 billion KRW and 26.4 billion KRW respectively, while individuals bought 84.3 billion KRW.

By sector, transportation equipment & parts (-1.57%), paper & wood (-1.44%), machinery & equipment (-1.42%), finance (-1.26%), and non-metallic minerals (-1.02%) declined, while healthcare & precision instruments (4.30%), pharmaceuticals (2.18%), and entertainment & culture (1.47%) rose.

Top market cap stocks showed mixed results. HLB surged 9.34% on news that the targeted anticancer drug ‘Rivoceranib’ and immuno-oncology drug ‘Camrelizumab’ combination therapy was listed as a first-line treatment in the ‘Hepatocellular Carcinoma Diagnosis and Treatment Guidelines’ published by the European Society for Medical Oncology (ESMO). Classys also jumped 19.14%. Alteogen (2.03%) and Rainbow Robotics (1.55%) were also strong. On the other hand, EcoPro BM (-3.32%) and EcoPro (-1.93%) declined.

Researcher Kim forecasted, “With the January US Personal Consumption Expenditures (PCE) price index scheduled for release just before the weekend and a market holiday early next week, caution is expected to continue.”