KOSPI Closes Firm in the 2,620s Amid Cautious Trading, KOSDAQ Falls Over 1%

On May 16, the domestic stock market closed mixed. The KOSPI finished slightly higher, supported by buying from foreign investors and institutions, while the KOSDAQ fell by more than 1% due to weakness in the secondary battery sector.

On this day, the KOSPI closed at 2,626.87, up 5.51 points (0.21%) from the previous session. The KOSPI had opened at 2,630.64, up 9.28 points (0.35%), but gains were limited as individual investors increased their selling. By investor type, individuals recorded a net sale of 303.3 billion won, while foreign investors and institutions bought 170 billion won and 134 billion won, respectively.

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Most of the top market capitalization stocks ended higher. In particular, Hanwha Aerospace and SK Hynix led the market, rising by 2.31% and 2%, respectively. On the other hand, LG Energy Solution plunged 5.37%, losing its position as the third-largest stock by market capitalization on the KOSPI to Samsung Biologics. The slump in the secondary battery industry, combined with news of reduced U.S. support for electric vehicles, is seen as having dampened investor sentiment.

On the KOSPI, 318 stocks rose, including two that hit the upper price limit. Meanwhile, 581 stocks declined and 39 remained unchanged.

On the same day, the KOSDAQ closed at 725.07, down 8.16 points (1.11%). The index had opened at 734.38, up 1.15 points (0.16%), but soon turned negative. While individuals alone made net purchases of 235.9 billion won, foreign investors and institutions sold 179 billion won and 43.2 billion won, respectively.

On the KOSDAQ, most of the top market capitalization stocks ended lower. Classys plunged nearly 7%, while Alteogen (-4.08%), Ecopro (-3.50%), Ecopro BM (-2.98%), and Samchundang Pharm (-1.99%) also fell. In contrast, Peptron (5.10%), Lino Industrial (3.33%), and PharmaResearch (1.46%) closed higher.

On the KOSDAQ, 476 stocks rose, including three that hit the upper price limit, while 1,172 stocks fell and 72 remained unchanged.

By sector, power stocks showed a notable rise, climbing 4.79%. Samyang Foods soared by more than 19%, earning the title of 'emperor stock', which helped the food and beverage sector rise by 2.87%. The machinery and other capital goods sectors also jumped by 2.47% and 2.27%, respectively. In contrast, the computer sector dropped 8.64%, while electrical products (-4.34%), toys and leisure products (-2.87%), chemicals (-2.44%), and telecommunications equipment (-2.27%) ended lower.

Kim Jiwon, a researcher at KB Securities, commented, "Although the recent V-shaped rebound has increased the burden on the stock market, the positive trend is expected to continue as foreign investors have turned to net buying. However, the momentum for further gains is likely to slow somewhat. With the APEC Ministerial Meeting on Trade taking place in Jeju on May 15-16, attention should be paid to whether there will be additional progress in Korea-U.S. and U.S.-China relations."