KOSPI Slides Nearly 2% But Barely Holds 6,800 Level at Close
The KOSPI index dropped nearly 2% in a single day but managed to defend the 6,800 mark at the close. According to the Korea Exchange on the 7th, the KOSPI finished at 6,803.90, down 137.49 points (1.98%) from the previous session. The index opened at 6,864.25, down 77.14 points (1.11%), briefly attempted a rebound, but soon turned lower and extended its losses.
Although retail investors net bought 2.557 trillion won, foreign and institutional investors net sold 2.6087 trillion won and 668.4 billion won respectively, dragging the index lower. Foreign investors were also net sellers of 292 billion won in the KOSPI 200 futures market.
The buyback programs that had influenced market supply and demand have also weakened. Samsung Electronics completed its planned 15 trillion won share buyback as of the previous day, while SK Hynix has executed about 80% of its planned purchases. SK Hynix, which had been buying 600,000 to 650,000 shares daily, reduced its daily buyback volume to 400,000 to 500,000 shares starting on the 2nd. As a result, the "other corporations" category, which had net bought an average of about 1.6 trillion won per day thanks to buybacks by Samsung Electronics and SK Hynix, net bought only 709 billion won that day.
Overnight U.S. markets lay behind the weak start. Memory semiconductor stocks including Micron Technology and SK Hynix's ADRs fell, weighing on sentiment. Samsung Electronics rose more than 2% intraday, leading a rebound, but the index's losses widened after the stock turned lower. The moves were interpreted as a reaction to rising international oil prices amid escalating military clashes in the Strait of Bab el-Mandeb, which pushed up U.S. Treasury yields. As of 3:45 p.m., West Texas Intermediate (WTI) crude futures topped $90 per barrel and Brent crude exceeded $101, while the yield on the 10-year U.S. Treasury rose above 5.3%.
Caution ahead of Samsung Electronics' third-quarter preliminary results, due on the 8th, also dampened investor sentiment. Lee Kyung-min, a researcher at Daishin Securities, said, "LG Electronics' third-quarter operating profit fell 24.8% short of expectations," adding, "With Samsung Electronics' preliminary results just around the corner, this stoked earnings concerns."
Among large caps, Samsung Electronics and SK Hynix fell 1.29% and 2.82% respectively, while SK Square (-1.64%), Samsung Electro-Mechanics (-4.24%) and Hyundai Motor (-3.45%) also declined. On the other hand, LG Energy Solution (0.26%), KB Financial (0.96%) and Celltrion (0.60%) closed higher. By sector, medical and precision equipment (5.86%) and entertainment and culture (3.95%) rose, while metals (-4.14%) and transport equipment and parts (-3.54%) fell sharply. In the KOSPI market, 333 stocks advanced, 527 declined and 57 were unchanged.
The KOSDAQ also gave up the 900 level in a single day. The KOSDAQ index closed at 898.43, down 21.49 points (2.34%). Although individuals net bought 503.8 billion won, foreign and institutional investors net sold 265.1 billion won and 216.4 billion won respectively, pressuring the index.
Trading value totaled 19.743 trillion won on the KOSPI market and 7.632 trillion won on the KOSDAQ, while Nextrade's pre-market and main market trading value came to a combined 10.602 trillion won. Meanwhile, as of 3:30 p.m., the won-dollar exchange rate in the Seoul foreign exchange market stood at 1,340.4 won, down 3.2 won against the dollar.
