"Expectations of Korea-US Trade Deal"
Semiconductors, Automobiles, and Secondary Batteries Surge
KOSDAQ Dragged Down by Weakness in Major Biotech Stocks
The KOSPI closed higher after surpassing the all-time high of the 3,740 mark.
On October 16, the KOSPI index finished trading at 3,748.37, up 91.09 points (2.49%) from the previous day. The index opened at 3,675.82, up 18.54 points (0.51%), and continued its upward trend throughout the session, breaking through the 3,700 mark for the first time ever and closing above 3,740. Foreign investors and institutions made large net purchases of 658.7 billion won and 741.8 billion won, respectively. Individual investors, on the other hand, sold a total of 1.3937 trillion won.
Among the top market capitalization stocks, LG Energy Solution (8.80%), Hyundai Motor (8.28%), Kia (7.23%), SK Hynix (7.10%), SK Square (5.75%), Samsung C&T (5.34%), Hanwha Ocean (3.81%), Samsung Electronics (2.84%), Hyundai Mobis (2.83%), Celltrion (2.80%), Shinhan Financial Group (2.25%), Samsung Electronics Preferred Shares (1.35%), and Doosan Enerbility (0.97%) all rose. In contrast, Hanwha Aerospace (-1.89%), KB Financial Group (-1.73%), and HD Korea Shipbuilding & Offshore Engineering (-1.17%) declined.
By industry, most sectors rose, including electronics and electrical (4.14%), manufacturing (2.75%), retail (2.59%), large-cap stocks (2.30%), chemicals (2.08%), composite (2.04%), transportation equipment and parts (2.01%), securities (2.00%), and transportation and warehousing (1.93%). On the other hand, metals (-2.52%), entertainment and culture (-1.09%), and food, beverages, and tobacco (-0.46%) fell.
Automotive stocks such as Hyundai Motor and Kia were particularly strong, as reports suggested that the Korea-US tariff negotiations could be concluded soon. Scott Besant, US Treasury Secretary, stated on October 15 (local time) that trade negotiations with South Korea could be concluded within the next 10 days.
Semiconductor and secondary battery-related stocks also showed gains. Lee Jaewon, a researcher at Shinhan Investment & Securities, said, "Both Samsung Electronics and SK Hynix hit record highs on expectations that the semiconductor industry has entered a super cycle. Secondary battery-related stocks were also strong, as global electric vehicle sales reached a record high of 2.1 million units last month."
The KOSDAQ index closed at 865.41, up 0.69 points (0.08%) from the previous day. The index opened at 866.82, up 2.10 points (0.24%), dipped during the session, but rebounded toward the close to finish slightly higher. Foreign investors and institutions were net sellers of 94.6 billion won and 236.2 billion won, respectively. Individual investors bought 348.5 billion won.
Among the top market capitalization stocks, EcoPro BM (14.22%), EcoPro (14.03%), HLB (3.24%), Samchundang Pharm (3.06%), PharmaResearch (2.55%), and EO Technics (1.56%) rose. In contrast, LegoChem Biosciences (-7.98%), ABL Bio (-4.22%), Peptron (-3.75%), Alteogen (-2.92%), Caregen (-2.40%), Kolon TissueGene (-1.58%), SM Entertainment (-1.57%), Rainbow Robotics (-1.43%), and Voronoi (-1.42%) declined.
Lim Jeongeun, a researcher at KB Securities, explained, "During the previous day's National Assembly Health and Welfare Committee audit, the issue of abuse of obesity treatments was raised. The government's announcement of stronger oversight and regulation led to declines in related stocks, contributing to the KOSDAQ's sluggish performance." She added, "With ongoing US-China tensions and concerns over a prolonged shut down (temporary work stoppage), investors should be aware that conflicting upward and downward factors could keep the stock market volatile for the time being."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
