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KOSPI Inches Higher Amid Volatility as Institutions Buy, While Retail Investors Take Profits
The KOSPI index held near the pivotal 3,170 mark during early trading on the 23rd, driven by heavy institutional buying even as retail investors took profits, applying downward pressure on the market. At the same time, foreign investors showed caution, purchasing approximately 50 billion won ($42 million) worth of shares.
As of 9:48 a.m. KST, the KOSPI index stood at 3,171.69, reflecting a mild increase of 2.98 points (0.09%) from the prior session’s close of 3,169.94, according to the Korea Exchange. The index opened on a stronger note at 3,189.65, a gain of 19.71 points (0.62%), before paring some of these early advances.
Institutional Investors Stem Decline as Retail Selling Dominates
On the main board, institutional investors emerged as net buyers, purchasing 236.3 billion won ($197 million) worth of shares, supplemented by a modest 53.5 billion won ($44.6 million) net inflow from foreign investors. However, aggressive selling by retail investors — who unloaded a net 300.6 billion won ($251 million) for profit-taking — capped gains and contributed to bouts of volatility.
Across market sectors, performance remained mixed. Gains were led by metals (1.65%), transportation and warehousing (1.39%), and pharmaceuticals (1.00%), while smaller improvements were recorded in the electric and gas utilities, manufacturing, and chemical sectors. Conversely, key laggards included securities (-1.64%), entertainment and media (-1.63%), and insurance (-1.01%), which weighed on market sentiment.
Large-Cap Stocks Deliver Mixed Results
The performance of blue-chip stocks was varied. Samsung Electronics (-0.53%) and SK Hynix (-0.56%) declined, pressured by weakness in the Philadelphia Semiconductor Index, which slid 1.8% in the previous U.S. trading session. On the flip side, LG Energy Solution (1.35%), Samsung Biologics (2.11%), Hyundai Motor (6.36%), and Kia Motors (3.99%) were among the key outperformers, bolstered by optimism surrounding progress in U.S.-Korea tariff negotiations.
Han Ji-young, a senior researcher at Kiwoom Securities, remarked: “The semiconductor sector is facing downward pressure due to weak U.S. trends, as evidenced by the Philadelphia Semiconductor Index. Furthermore, the KOSPI's recent sharp rise in June, coupled with investor caution ahead of the second-quarter earnings season, has led to consolidation in the market.”
Han also noted resilience in select industries, stating: “Sectors like shipbuilding and defense are holding steady, supported by favorable domestic policy measures and strong earnings momentum. The odds of a sharp market correction appear limited in the near term.”
KOSDAQ Weakens Amid Foreign and Institutional Selling
Unlike the main board, the secondary KOSDAQ index struggled, shedding 6.20 points (0.76%) to settle at 806.95 as of the same morning. The index initially opened slightly higher at 815.88 but reversed direction amid selling pressure from both foreign and institutional investors. Foreign investors were net sellers of 71.3 billion won ($59.6 million), and institutional players offloaded 49.7 billion won ($41.6 million). Retail investors attempted to counter the decline by purchasing a net 128.7 billion won ($107.5 million).
Performance by sector mirrored trends on the KOSPI, with paper and wood products (2.64%) and pharmaceuticals (1.27%) leading the advancers. Losses, however, were seen in telecommunications (-2.21%), entertainment and media (-1.63%), machinery and equipment (-1.36%), and IT services (-1.30%), which dragged the overall index lower.
Among KOSDAQ large-cap stocks, results were equally mixed. Stocks like Alteogen (0.42%), EcoPro BM (1.47%), and Rigaken Bio (0.97%) made gains, while others, including Peptreon (-2.68%), HLB (-0.40%), PharmaResearch (-0.35%), and Rainbow Robotics (-1.48%), extended their declines.
Currency Market: Korean Won Strengthens Against the Dollar
In the forex market, the Korean won strengthened against the U.S. dollar, supported by easing concerns over global financial conditions. The won-dollar exchange rate opened at 1,381.1 won, down 6.7 won from the previous session’s close of 1,387.8 won, signaling improved confidence in Korea's economic fundamentals.
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