[Market Opening Update] KOSPI Hovers Near 2630 Amid Profit-Taking; Samsung Heavy Industries Rises 4%

# South Korean Stocks Open Lower Amid Profit-Taking; Kospi Declines 0.4% The Kospi index saw a decline of about 0.4% as trading commenced on October 27, sitting around the 2,630 mark due to net selling by institutional and foreign investors aiming to secure profits. At 9:28 a.m. KST, the Kospi was at 2,632.96, a drop of 11.63 points or 0.45% from the previous session. The prior day's rally in South Korean stocks, spurred by U.S. President Donald Trump's announcement of a temporary suspension of tariffs on the European Union (EU), was short-lived as investors took profits, pushing prices down. Institutional investors sold off shares worth 18.6 billion KRW, while foreign investors divested 67 billion KRW in stocks. Retail investors mitigated this by purchasing 80.5 billion KRW worth of shares, striving to steady the market. # Sector Performance: Medical Stocks Surge, Electronics and Financials Retreat The downturn affected multiple sectors, with electric and gas, and machinery and equipment stocks plunging over 1%. Electronics, insurance, IT services, securities, financials, and manufacturing also traded negatively. In contrast, medical and precision instrument stocks surged over 8%, and the retail sector gained over 1%. Major stocks showed a bearish trend. Korea Electric Power Corp. and NAVER dropped over 2%, while Samsung SDI, Doosan Enerbility, Korea Zinc, LG Chem, and Krafton fell more than 1%. On a positive note, Samsung Heavy Industries rose over 4%, LIG Nex1 increased by 4%, and Samsung C&T advanced more than 3%. # Kosdaq Index Slightly Lower as Foreign and Institutional Selling Persists The Kosdaq index also felt the pressure, declining by 1.25 points or 0.17% to 724.02. Foreign investors and institutions maintained substantial sell-offs, net selling 46.4 billion KRW and 11.8 billion KRW, respectively. Retail investors continued their buying spree, acquiring 59.2 billion KRW worth of shares. Sector-wise, construction, electronics, transportation and warehousing, non-metallic materials, and machinery and equipment stocks saw declines. Conversely, consumer staples rose over 2%, and textiles and apparel, general services, and transport parts sectors registered modest gains. # Key Kosdaq Performers Noteworthy Kosdaq-listed companies experienced mixed results. Caregen dropped over 3%, while EcoPro BM, Techwing, Leeno Industrial, and BHI each fell more than 2%. On the upside, VT GMP surged over 6%, and ABL Bio climbed more than 3%, leading the gainers in the small-cap index. # Analyst Insights and Currency Movement Han Ji-young, a researcher at Kiwoom Securities, commented, “Following yesterday's robust rally fueled by large-scale spot and futures buying by institutions, today's profit-taking is a natural response. Macro factors, including the won-dollar exchange rate and U.S. two-year Treasury auctions, are likely contributing to the mixed performance across individual stocks.” In the foreign exchange market, the Korean won opened at 1,368.0 KRW to the U.S. dollar, up 3.6 KRW from the previous session's close. This indicates potential challenges for local equities, especially for companies dependent on exports.