Cautious Mood in Korean Stock Market Ahead of Holiday... KOSPI and KOSDAQ Close Lower

KOSPI Ends Slightly Lower, KOSDAQ Also Weak
Many Sectors Including Finance and Semiconductors Decline
...Shipbuilding and Defense-Related Stocks Show Strength

The Korean stock market closed lower on September 30. Foreign buying was limited due to concerns over a potential United States federal government shutdown (temporary suspension of government operations), and with the long Chuseok holiday ahead, there was a general absence of clear market participants.

On the morning of the 30th, employees are working in the dealing room at the headquarters of Hana Bank in Jung-gu, Seoul. Photo by Yonhap News Agency

On this day, the KOSPI index finished at 3,424.60, down 6.61 points (0.19%) from the previous day. The index opened at 3,436.00, up 4.79 points (0.14%), but ended the day lower after a weak performance in the afternoon. Institutional investors made a net sale of 55.9 billion won, while individual investors sold a net 15.3 billion won. Foreign investors purchased a net 16.6 billion won.

Among the top stocks by market capitalization, HD Hyundai Heavy Industries (up 4.78%), Hanwha Aerospace (up 4.53%), Hanwha Ocean (up 3.08%), HD Korea Shipbuilding & Offshore Engineering (up 2.75%), SK Square (up 2.23%), Samsung Life Insurance (up 0.84%), and Hyundai Mobis (up 0.84%) rose. In contrast, Celltrion (down 2.91%), NAVER (down 2.19%), Samsung C&T (down 1.81%), LG Energy Solution (down 1.14%), and Samsung Biologics (down 0.60%) declined.

By industry, transportation equipment and parts (up 2.19%), machinery and equipment (up 1.01%), and construction (up 0.51%) sectors rose. On the other hand, most sectors such as transportation and storage (down 1.95%), electricity and gas (down 1.71%), securities (down 1.60%), IT services (down 1.60%), distribution (down 1.50%), pharmaceuticals (down 1.16%), and textiles and apparel (down 1.12%) declined.

Kim Jiwon, a researcher at KB Securities, said, "While many sectors such as finance and semiconductors declined, shipbuilding and defense-related stocks were strong. United States President Donald Trump announced the 'Gaza Strip Peace Initiative,' and while the Israeli side agreed, there is a possibility of further escalation if Hamas rejects the proposal. This led Hanwha Aerospace to reach a new record high."

The KOSDAQ index closed at 841.99, down 4.72 points (0.56%) from the previous day. The index started at 847.52, up 0.81 points (0.10%), but eventually finished weakly in the 840-point range. Foreign investors sold a net 181 billion won. In contrast, individual investors bought a net 190.3 billion won, and institutions purchased a net 22.5 billion won.

Among the top KOSDAQ stocks by market capitalization, Voronoi (up 3.83%), Peptron (up 3.63%), PharmaResearch (up 3.62%), Caregen (up 3.48%), Hugel (up 1.68%), and Kolon TissueGene (up 0.74%) rose. Meanwhile, HLB (down 2.19%), Ecopro BM (down 2.08%), Samchundang Pharm (down 2.05%), Ecopro (down 1.96%), SM Entertainment (down 1.74%), Alteogen (down 1.72%), LIG ChemBio (down 1.40%), Rainbow Robotics (down 1.28%), EO Technics (down 1.27%), HPSP (down 1.03%), ABL Bio (down 0.96%), Silicon Two (down 0.87%), Classys (down 0.79%), and LIG Nex1 (down 0.58%) closed lower.