KOSPI falls for third straight session; financials, automakers, and pharmaceutical stocks face downward pressure.
KOSDAQ clings to 890 mark; stocks tied to delisting grace periods and ESS (Energy Storage Systems) surge.
South Korean financial markets saw a synchronized decline on the 8th, as both the KOSPI and KOSDAQ indexes retreated. The KOSPI suffered its third consecutive daily loss, falling to the 6,600 range under the weight of massive sell-offs by foreign and institutional investors. The KOSDAQ also struggled, barely managing to hold the 890 support level amid weakness in biotech shares.
According to the Korea Exchange, the KOSPI closed at 6,625.93, down 177.97 points (2.62%) from the previous trading session. The KOSDAQ finished at 892.27, a decline of 6.16 points (0.69%). The KRW/USD exchange rate ended the intraday session at 1,338.5 won, down 1.9 won from the prior close.
The KOSPI’s decline was driven by broader investor anxiety across Asian markets due to uncertainties surrounding global sovereign bond yields. Despite strong earnings reports from major semiconductor firms, geopolitical instability in the Middle East acted as a major headwind. By sector, financials fell 4.1%, transportation equipment and parts dropped 3.9%, pharmaceuticals declined 3.7%, and IT services retreated 3.5%. Large-cap stocks slid 2.7%, while mid-cap and small-cap stocks fell 1.4% and 0.5%, respectively.
In terms of trading activity, foreign investors net sold 1.9996 trillion won, and institutional investors net sold 1.6632 trillion won, while individual investors net purchased 2.9051 trillion won. Foreigners focused their selling on electrical and electronics sectors (1.5066 trillion won net sell), as well as financials (289 billion won) and machinery and equipment (131.5 billion won).
The KOSDAQ, meanwhile, experienced its second straight day of losses amid volatility in international oil prices and bond yields, leading to sector-specific divergence. By sector, pharmaceuticals fell 3.5%, general services dropped 3.2%, and construction declined 2.9%. While institutional investors net sold 106.4 billion won, foreign and individual investors net purchased 64.7 billion won and 50.1 billion won, respectively.
Stocks linked to delisting grace periods surge; redevelopment expectations boost transport plays
Shares surged following the Korea Exchange’s decision to grant a grace period for delisting procedures related to companies failing to meet market capitalization requirements. Hyungji I&C (011080) soared 30.00%, Hyungji Global (308100) rose 29.88%, Bioinfra (199730) climbed 29.93%, Yesun Tech (250930) added 29.90%, Moa Data (288980) gained 29.56%, Eugene Technology (240600) rallied 30.00%, and Newin Tech (012340) advanced 29.95%.
Expectations for the redevelopment of the Seoul Express Bus Terminal and the revaluation of associated asset holdings continued to drive interest. Chunil Express (000650) rose 22.57%, and Dongyang Express (086670) hit the daily upper limit, surging 29.91%.
ESS-related stocks show strength; mixed results based on battery earnings and drug developments
LG Energy Solution (373220) climbed 2.56% following news of record-high quarterly sales revenue. Samki Energy Solutions (419050) skyrocketed 29.93% on anticipation of increased demand for components used in Energy Storage Systems (ESS), driven by the expansion of AI data centers.
Dawon Nexview (323350) rose 17.46% on expectations of rising demand for high-end semiconductor substrates, while BGF Eco Materials (126600) gained 12.20% on plans for a 15 billion won share buyback and cancellation. HLB Global (003580) rose 29.80%, buoyed by the new drug development momentum of the HLB Group.
Conversely, Peptron (087010) plunged 29.94% after news that its SmartDepot technology evaluation with Eli Lilly concluded without a subsequent commercialization agreement. Hanmi Pharmaceutical (128940) dropped 10.02% as investors locked in profits despite the approval of its new obesity drug. Alteogen (196170) fell 6.23% following reports that a Dutch court issued an injunction halting the sale of Keytruda SC in eight European countries amid a patent dispute.
Automotive stocks also faced downward pressure. Hyundai Motor (005380) declined 3.42% due to a stronger won and earnings concerns, while Kia (000270) slipped 2.55% amid market caution regarding its third-quarter earnings outlook.
NCSoft (036570) retreated 6.53% as market enthusiasm for its upcoming title, 'Aion 2,' dampened.
