KOSPI falls for a second consecutive session, driven by heavy foreign selling in electrical and electronics sectors.
KOSDAQ slips below 900; plague-related stocks and cosmetics shares show strength.
South Korean domestic equity markets concluded the session lower on the 7th as both the KOSPI and KOSDAQ retreated. The KOSPI dropped to the 6,800 level following heavy selling by foreign investors, marking a second consecutive day of losses, while the KOSDAQ surrendered the 900-point mark under the weight of profit-taking.
According to the Korea Exchange, the KOSPI closed at 6,803.90, down 137.49 points (1.98%). The KOSDAQ finished at 898.43, a decline of 21.49 points (2.34%). The won-dollar exchange rate closed the session at 1,340.4 won, down 3.2 won from the previous trading day.
The KOSPI had initially turned positive during intraday trading, buoyed by the decline in U.S. Treasury yields and optimism regarding AI demand. However, it ultimately closed in negative territory as caution ahead of major companies' preliminary earnings announcements triggered a surge in foreign selling, particularly in the electrical and electronic sectors. By industry, metals fell 4.1%, transport equipment and parts dropped 3.5%, machinery and equipment declined 2.5%, and electrical and electronics slid 2.3%. Large-cap stocks fell 2.1%, while mid-cap and small-cap stocks saw declines of 0.6% and 0.1%, respectively.
In terms of trading activity, foreign investors net sold 2.6062 trillion won and institutional investors net sold 674.7 billion won, while individual investors net bought 2.5609 trillion won. Foreigners offloaded 2.0906 trillion won in the electrical and electronics sector alone, with an additional 221.2 billion won and 119.2 billion won in net selling across transport equipment/parts and metals, respectively.
The KOSDAQ fell despite the previous day's gains on the Nasdaq, as profit-taking materialized, focused on the electrical/electronics and machinery/equipment sectors. By sector, machinery and equipment fell 4.9%, transport equipment and parts dropped 3.2%, and finance slid 3.0%. Foreign and institutional investors net sold 264.8 billion won and 216.9 billion won, respectively, while individuals net bought 504.2 billion won.
Plague fears in Russia spark rally in related stocks; asset-heavy stocks surge
Infectious disease diagnostics and pharmaceutical-related stocks rallied following reports of potential pathogen leaks from a plague research institute in Russia. Green Cross MS (142280) jumped 25.89%, Humasis (205470) surged 19.77%, and GeneMatrix (109820) gained 15.21%. Kolmar BNH (215380) rose 7.27%, and Seegene (096530) climbed 4.43%.
Kookje Pharma (002720) hit the daily upper limit, rising 29.91% as it gained attention for potential plague treatments, further bolstered by expectations of management succession following the stake increase by Vice Chairman Nam Tae-hoon, a third-generation owner.
Expectations for the redevelopment of the Seoul Express Bus Terminal and the revaluation of asset holdings also boosted related stocks. Chunil Express (000650) and Dongyang Express (084670) both reached the daily limit, rising 29.99% and 30.00%, respectively.
Cosmetics stocks rise; individual catalysts boost specific names
Cosmetics stocks saw gains driven by robust K-beauty exports and expectations for improved third-quarter earnings. Cosmax (192820) rose 3.52% on earnings expectations, and Kolmar Korea (161890) gained 4.82% on the back of anticipated export growth.
SAMG Entertainment (419530) surged 27.16% on news that its flagship IP, "Catch! Teenieping," is set to enter Target, a major U.S. retail chain.
Alpha Chips (117670) soared 29.97% to reach the daily upper limit following a decision for a 1-to-1 free bonus share issuance.
HYBE (352820) rose 6.37% on positive third-quarter earnings forecasts, and JNTC (204270) gained 12.42% as its glass substrate processing time-reduction technology gained market attention.
Conversely, LG Electronics (066570) plummeted 10.54% following its preliminary third-quarter earnings release. Ducksan Neolux (Note: Ducksan Nepcore referenced in original) fell 14.24% due to profit-taking following the successful fifth launch of the Nuri rocket, and Poongsan (103140) dropped 9.81% amid concerns that its third-quarter operating profit might fall short of market expectations.
The Codi (224060) fell 15.87% after canceling plans for a 33 billion won convertible bond (CB) issuance, and Flitto (300080) dropped 9.39% due to a reduction in the scope of an AI data-related contract.
