KOSPI drops for the fourth straight session; 3.65% slide fueled by earnings season jitters.
KOSDAQ breaks below 850; shipping and Honam-region semiconductor stocks buck the trend.
South Korean markets faced a severe sell-off on the 12th, with both the KOSPI and KOSDAQ indices tumbling. The KOSPI retreated for the fourth consecutive trading day, falling below the 6,400 level as foreign investors engaged in a massive sell-off, while the KOSDAQ lost the 850-point support level under pressure from institutional and foreign selling.
According to the Korea Exchange, the KOSPI finished the day at 6,384.24, down 241.69 points (3.65%). The KOSDAQ closed at 849.19, sliding 43.08 points (4.83%). The won-dollar exchange rate closed the session at 1,335.1 won, down 7.7 won from the previous close.
Despite a rally in overseas markets at the end of last week, the KOSPI opened lower. Downward pressure on the index intensified as support from corporate treasury stock buying weakened, while a sustained foreign exodus and growing caution ahead of the earnings season accelerated the decline.
By sector, machinery and equipment fell 6.7%, construction dropped 4.5%, electrical and electronics slid 4.5%, and medical and precision instruments declined 4.2%. Large-cap stocks fell 3.8%, while mid-cap and small-cap stocks retreated 2.6% and 1.8%, respectively.
In terms of trading volume, foreign investors net sold 2.0265 trillion won, and institutions net sold 116 billion won, whereas retail investors net purchased 1.4741 trillion won. Foreigners were particularly active in the electrical and electronics sector, offloading 1.7094 trillion won, while also net selling 322.7 billion won and 54.7 billion won in the financial and machinery/equipment sectors, respectively.
The KOSDAQ declined for the third consecutive day due to joint selling by institutions and foreign investors. By sector, electrical and electronics fell 6.4%, finance dropped 6.0%, and transportation equipment and parts declined 5.7%. Institutions and foreigners net sold 223 billion won and 28.3 billion won, respectively, while retail investors net bought 249 billion won.
Shipping Stocks Rise on Hormuz Transit Disruptions; Honam Semiconductor Shares Surge
Shipping stocks saw gains due to transit disruptions in the Strait of Hormuz and rising freight rates. HMM (011200) rose 4.81%, STX Green Logis (465770) gained 8.99%, Pan Ocean (028670) climbed 6.97%, and Korea Line (005880) advanced 2.71%.
Stocks linked to the potential creation of a semiconductor cluster in the Honam region also rallied. Seosan (079650) hit the daily upper limit, surging 30.00%. Kumho Electric (001210) rose 29.93%, Kumho Construction (002990) gained 20.29%, and Namhwa Construction (091590) rose 13.18%. Expectations were stoked by SK Group Chairman Chey Tae-won’s visit to Gwangju.
Hanwha M&S (0220W0) soared 24.01% following news of a tender offer by Vice President Kim Dong-seon. Dongyang Express (084670) gained 8.68% on continued expectations regarding the redevelopment of the Seoul Express Bus Terminal.
Mixed Results for Biotech and Retail; Blue Chips Tumble on Earnings Concerns
Daewha Pharmaceutical (067080) climbed 8.58% following news of an additional indication for its oral anticancer drug in China. Celltrion (067080) rose 0.45% on its record-high third-quarter earnings, and E-mart (139480) gained 3.29% on reports of a recovery in Starbucks transaction volumes.
Conversely, DN Automotive (007340) plunged 20.43% amid allegations involving lead emission stimulation. LG Innotek (011070) fell 16.17% on expectations of poor third-quarter performance, and Hyosung Heavy Industries (298040) dropped 10.10% due to earnings concerns.
S-Oil (010950) fell 5.69% as attention focused on U.S. President Trump’s remarks regarding a potential ceasefire related to Russian energy.
