KOSPI Recaptures 4,900 Mark on Hyundai Motor Surge... KOSDAQ Plunges Over 2%

KOSPI Rebounds on Foreign and Institutional Buying
Hyundai Motor Group Stocks Rally Across the Board

On January 21, the KOSPI, which had plunged by more than 1% in early trading and retreated to the 4,800 level, managed to rebound in the latter part of the session and closed back above the 4,900 mark. In contrast, the KOSDAQ fell by more than 2% and ended trading at the 950 level.

Yonhap News Agency

On this day, the KOSPI index closed at 4,909.93, up 0.49% from the previous trading day. The index opened at 4,808.94, down 1.57% from the previous session, and quickly dropped to 4,807.13, heightening market anxiety. Although it briefly recovered to the 4,900 level in the morning, it soon turned downward, displaying increased volatility. However, the index expanded its gains in the latter part of the session and finished trading in the 4,900 range.

Buying by foreign investors and institutions led the index rebound. They purchased 439.5 billion won and 322 billion won worth of shares, respectively, during the day. In contrast, individual investors sold a net 996.7 billion won, seeking to realize profits.

The main driver of the index's rise was undoubtedly Hyundai Motor Company. Its stock surged 14.61% to close at 549,000 won. During the session, it climbed as high as 551,000 won, setting a new 52-week high. Positive expectations surrounding physical artificial intelligence (AI) and optimistic forecasts from securities firms that Hyundai Motor's stock could reach 800,000 won had a favorable impact. Kang Sungjin, a researcher at KB Securities, commented, "Subsidiary Boston Dynamics is expected to be a decisive turning point for Hyundai Motor's productivity innovation." Other group affiliates, including Hyundai Mobis (up 8.09%), Hyundai Wia (up 7.21%), and Kia (up 5.00%), also posted gains.

Large-cap semiconductor stocks showed mixed results. Samsung Electronics, the largest company by market capitalization, rose 2.96%, while SK Hynix fell 0.40%. Meanwhile, LG Energy Solution (-2.11%), Samsung Biologics (-2.45%), HD Hyundai Heavy Industries (-1.56%), and Doosan Enerbility (-4.20%) declined, while Hanwha Aerospace (up 0.46%) closed higher.

By sector, transportation equipment and parts (up 3.99%), electricity and gas (up 3.13%), and electrical and electronics (up 1.03%) ended higher. In contrast, securities (-2.77%), pharmaceuticals (-2.64%), machinery and equipment (-2.46%), non-metallic minerals (-2.39%), and entertainment and culture (-1.75%) closed lower.

Lim Jeongeun, a researcher at KB Securities, analyzed, "The KOSPI showed intraday volatility due to the burden of approaching the 'five-thousand point' level and intensifying geopolitical conflicts surrounding Greenland," adding, "Although the stock market rally continues amid the full-fledged earnings season, the valuation burden from upward revisions to estimates is not significant, so the positive trend is expected to continue for the time being."

On this day, the KOSDAQ closed at 951.29, down 2.57% from the previous session. The index started at 958.05, down 1.88% from the previous session, and hovered between 940 and 960 throughout the session, maintaining a weak trend. Foreign investors and institutions sold 265.4 billion won and 661.1 billion won worth of shares, respectively, dragging the index down. In contrast, individual investors bought 956.3 billion won, engaging in bargain hunting.

On the KOSDAQ, pharmaceutical stocks, including Alteogen, the top company by market capitalization, led the decline with sharp drops. Alteogen announced the previous day that it would license out its subcutaneous injection conversion technology for 'ALT-B4' to Tesaro, a subsidiary of the global pharmaceutical company GlaxoSmithKline (GSK), in a deal worth up to 420 billion won. However, as the scale fell short of expectations, its share price plummeted 22.35%. Other major stocks by market capitalization, such as ABL Bio (-11.89%), HLB (-3.65%), and Legochem Biosciences (-12.12%), also posted significant declines. Additionally, other large-cap stocks, including Ecopro (-3.26%) and Rainbow Robotics (-1.72%), ended the session weaker.

By sector, general services (-11.20%), pharmaceuticals (-4.69%), construction (-3.21%), publishing and media replication (-2.90%), finance (-2.79%), and entertainment and culture (-2.58%) recorded the largest declines. In contrast, machinery and equipment (up 1.66%), distribution (up 1.54%), and transportation equipment and parts (up 0.95%) ended higher.