Wait-and-See Sentiment Grows as KOSPI Closes Slightly Lower

KOSDAQ Ends Higher Amid Mixed Market Sentiment

The KOSPI index closed slightly lower on May 20. After five consecutive weeks of gains, fatigue has accumulated, and with ongoing uncertainties such as tariffs and exchange rates, a wait-and-see sentiment is becoming more pronounced.

On this day, the KOSPI ended trading at 2,601.80, down 1.62 points (0.06%) from the previous day. The index opened at 2,622.68, up 19.26 points (0.74%), but eventually turned downward before the close. Foreign investors sold a net 114.5 billion won. Institutional investors bought a net 61 billion won, while retail investors purchased a net 20.6 billion won.

Among large-cap stocks, Doosan Enerbility (up 7.51%), Shinhan Financial Group (up 3.26%), Samsung C&T (up 1.63%), KB Financial Group (up 1.37%), SK Hynix (up 1.30%), and Celltrion (up 0.84%) rose. In contrast, HD Hyundai Heavy Industries (down 6.26%), LG Energy Solution (down 4.12%), HD Korea Shipbuilding & Offshore Engineering (down 3.12%), Hanwha Aerospace (down 2.86%), HMM (down 2.00%), Hanwha Ocean (down 1.65%), and Hyundai Motor (down 0.79%) declined.

On the 20th, employees are monitoring the stock market and exchange rates in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. Photo by Jo Yongjun

By industry, machinery and equipment (up 3.20%), electricity and gas (up 2.67%), paper and lumber (up 2.48%), construction (up 2.08%), entertainment and culture (up 1.95%), and securities (up 1.69%) showed strength. On the other hand, transportation equipment and parts (down 1.70%), chemicals (down 1.65%), transportation and warehousing (down 1.43%), and food, beverage, and tobacco (down 0.73%) sectors were weak.

Park Kihoon, a researcher at Korea Investment & Securities, said, "The domestic stock market started higher, reflecting the previous day's gains in the US stock market, but the KOSPI eventually turned lower." He explained, "This was due to uncertainty surrounding the US Federal Reserve's monetary policy and caution about the earnings season, both of which played a role."

Kim Jiwon, a researcher at KB Securities, noted, "The impact of the US credit rating downgrade was limited, but fatigue from the recent short-term rally led the domestic market to close mixed." She added, "Although the domestic market started with a rebound, there was a lack of additional momentum."

At the same time, the KOSDAQ index closed at 715.55, up 1.80 points (0.25%) from the previous session. The index opened at 719.36, up 5.61 points (0.79%). Foreign investors bought a net 53 billion won, and institutional investors bought a net 58.3 billion won. In contrast, retail investors sold a net 73.4 billion won.

Among KOSDAQ large-cap stocks, Sillicon Two (up 11.65%), Kolon TissueGene (up 10.84%), LIG ChemBio (up 7.50%), ABL Bio (up 5.09%), JYP Entertainment (up 4.43%), PharmaResearch (up 4.14%), Peptron (up 3.31%), SM Entertainment (up 1.43%), LinoTech (up 1.42%), and Hugel (up 1.03%) rose. Meanwhile, EcoPro (down 6.58%), Samchundang Pharm (down 6.03%), EcoPro BM (down 5.76%), Voronoi (down 4.24%), Classys (down 3.17%), Pearl Abyss (down 1.63%), and HLB (down 1.12%) declined.

Researcher Kim Jiwon forecasted, "Until the release of the FOMC minutes and Nvidia's earnings announcement next week, the market is likely to remain in a lull." She added, "As investors monitor economic indicators, there will likely be a process of digesting supply at the current index level."