The KOSPI fluctuated around flat territory on the 11th, battling around the 5,200 mark. The New York stock market closed lower overnight amid concerns over monetary tightening due to inflation, which weakened domestic investor sentiment.
At 9:10 a.m. on the day, the KOSPI index stood at 5,247.16, up 8.03 points (0.15%) from the previous trading session. Based on cumulative data from the Korea Exchange and NextTrade, institutional investors made net purchases worth 50 billion won, retail investors bought a net 23.8 billion won, while foreign investors sold a net 85.5 billion won.
On the exchange, Samsung Electronics traded at 198,900 won, unchanged from the previous day's closing price, while SK hynix fell by 2,000 won (0.17%) to 1.21 million won.
Celltrion showed a gain of over 2%, while LG Energy Solution and Hyundai Motor were slightly up. Samsung C&T, Samsung Electro-Mechanics, SK Square, Samsung Life Insurance, and KB Financial Group were slightly down, and Samsung Biologics was flat.
By sector, KOSPI entertainment and culture rose by over 4%, medical precision equipment by over 2%, while food and tobacco, transportation and warehousing, paper and wood, and pharmaceuticals all gained over 1%. IT services, general services, electricity and gas, chemicals, non-metals, metals, construction, transportation equipment, real estate, telecommunications, and securities entered slightly positive territory.
Conversely, insurance fell by over 1%, while textiles and apparel and machinery and equipment were slightly down. Distribution, finance, electrical and electronics, and manufacturing remained in flat territory.
KOSPI 200 night futures closed at 798.00, down 14.10 points (1.74%) from the previous day's daytime closing price.
On the 10th (local time), the US Dow Jones 30 Industrial Average fell by 0.30%, the S&P 500 index dropped by 0.38%, and the NASDAQ Composite Index declined by 0.74%. The Philadelphia Semiconductor Index also fell by 0.36%.
Hawkish remarks from a Federal Reserve (Fed) official and the October consumer price index (CPI) are assessed as factors that held back the stock market.
Christopher Waller, a Federal Reserve board member, stated ahead of the CPI release that if core CPI rose by 0.3% or more month-on-month, they should consider a 0.5 percentage point (50bp) rate hike in December. Following this remark, core CPI was actually reported to have risen by 0.3%, fueling market concerns over a "big step" (50bp increase).
Han Ji-young, a researcher at Kiwoom Securities, said, "A 50bp hike is a minority opinion," adding, "According to the CME FedWatch Tool, the probability of a 50bp hike in December is low because other Federal Reserve officials, including the Dallas Federal Reserve Bank president and the Vice Chair of the Federal Reserve, have not explicitly supported a 50bp increase."
She further noted, "The domestic stock market will likely see some of the previous day's KOSPI index gain (4.39%) given back due to rising US 10-year Treasury yields following the US CPI and concerns over export controls to China, among other NVIDIA-related noise," while adding, "However, considering that the CPI shock was limited, the domestic stock market will likely show downside resilience during trading hours."
The KOSDAQ market is rebounding. At this time, the index stood at 681.17, up 13.56 points (2.03%) from the previous day. Foreign investors made net purchases worth 6.1 billion won, while retail investors sold a net 7.5 billion won and institutional investors sold a net 1 billion won.
Among top market capitalization stocks, Jusung Engineering rose by over 6%, Simmtech by over 4%, Ecopro and Ecopro BM by over 3%, Alteogen by over 2%, and Samchundang Pharm, Rainbow Robotics, Iotech, and Rino Industrial all gained over 1%. HLB showed a slight decline.
All sectors except publishing (slightly down) entered positive territory. Finance and transportation equipment rose by over 3%, while entertainment and culture, machinery and equipment, non-metals, IT services, electrical and electronics, and manufacturing gained over 2%. Distribution, general services, metals, pharmaceuticals, chemicals, construction, and medical precision equipment all rose by over 1%. Telecommunications, food and tobacco, transportation and warehousing, other manufacturing, paper and wood, and textiles and apparel were slightly up.
The won/dollar exchange rate stood at 1,342.0 won in the Seoul foreign exchange market at 9:00 a.m., down 2.5 won from the previous day.
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