Supply-demand imbalances in domestic stocks, thin ice ahead next week… "U.S. options expiration is coming," cautious positioning continues

The KOSPI has fallen for three consecutive trading days, dropping into the 6,600 range. Supply-demand pressure expanded due to the impact of options expiration and ETF (exchange-traded fund) rebalancing, with foreign investors and institutional investors making net sales exceeding 4 trillion won. With U.S. options expiration day approaching next week and key economic indicators scheduled for release in succession, the domestic stock market is expected to continue a cautious, wait-and-see trend within a box range.

On the 8th, the KOSPI closed at 6,625.93, down 177.97 points (2.62%) from the previous trading day. This marks the first time since September 15 (6,627.26) in 14 trading days that the KOSPI index closing price has fallen below 6,700.

In the KOSPI market, retail investors made net purchases of 2 trillion 906.1 billion won, while foreign investors and institutional investors made net sales of 1 trillion 992.1 billion won and 1 trillion 671.4 billion won, respectively. Within institutional investors, the financial investment sector, which reflects trades in ETFs (exchange-traded funds) among others, saw net sales of 208.51 billion won.

Researchers Im Jeong-eun and Tae Yoon-seon from KB Securities explained, "As the KOSPI continues its box-range trend, supply-demand pressure expanded due to today's options expiration and ETF rebalancing, combined with tomorrow's holiday market closure, causing it to fall below the 6,700 line." They added, "On this day, foreign investors and institutional investors made a combined net sale of approximately 4.3 trillion won in the KOSPI market."

Researcher Im stated, "This week's returns for the KOSPI and KOSDAQ were in the -5% range and -0% range, respectively, making it a week where the KOSDAQ performed relatively well." He/She forecasted, "Next week, with U.S. financial stock earnings releases and the options expiration day on the 16th (local time) ahead, the market will continue to explore directionality by checking key indicators such as the U.S. September CPI (consumer price index) on the 14th and PPI (producer price index) and retail sales on the 15th."

By sector, textiles/apparel and real estate were slightly firm, while all other sectors declined. Electric/electronics, which includes semiconductors, fell in the 2nd% range, as did manufacturing, machinery/equipment, electric/gas, and metals. Construction, securities, insurance, distribution, IT services, and pharmaceuticals fell in the 3rd% range, while financials dropped in the 4th% range.

Among top market capitalization stocks, LG Energy Solution closed up 2.56% after announcing preliminary Q3 operating profit more than double the market consensus estimate. Samsung SDI, another secondary battery stock, rose 1.25%. Samsung Electronics and SK Hynix fell in the 2nd% range, while Doosan Enerbility, KB Financial Group, Hyundai Motor, Samsung Electric, and Shinhan Financial Group dropped in the 3rd% range. Samsung Life Insurance and Samsung Biologics declined in the 4th% range. Samsung C&T was weak in the 5th% range, while SK Square and Hanwha Aerospace were soft in the 8th% range.

The KOSDAQ closed at 892.27, down 6.16 points (0.69%) from the previous trading day.

In the KOSDAQ market, retail investors and foreign investors made net purchases of 50.6 billion won and 64 billion won, respectively, while institutional investors made net sales of 106.8 billion won.

By sector, publishing/media rose in the 2nd% range, while machinery/equipment and non-metals gained in the 1st% range. Distribution, medical/precision equipment, and transportation equipment/parts fell in the 1st% range, IT services and construction dropped in the 2nd% range, and general services and pharmaceuticals declined in the 3rd% range.

Among top market capitalization stocks, Jusung Engineering was strong in the 8th% range, while EcoPro BM and Rino Industrial rose in the 3rd% range, PSK Holdings gained in the 2nd% range, and Wonik IPS, Simtech, IOTECH, and Samchundang Pharmaceutical increased in the 1st% range. HPSP fell in the 1st% range, RoboTech dropped in the 2nd% range, RAINBOW Robotics declined in the 4th% range, and Alteogen was weak after falling in the 6th% range.

In the Seoul foreign exchange market, the won-dollar exchange rate closed daily trading at 1,338.5 won, down 1.9 won.