KOSPI closes at 6,008.81 as foreign sell-off triggers shift to negative territory
KOSDAQ extends losses for fifth straight session; gains observed in ESS, shipping, and steel sectors
South Korean markets saw both the KOSPI and KOSDAQ indices decline on the 14th. The KOSPI, which traded in positive territory earlier in the session, reversed course to close barely above the 6,000 mark following heavy selling in semiconductor-related stocks. The KOSDAQ also faced downward pressure, led by losses in semiconductor materials, parts, and equipment (SAPE) and machinery sectors.
According to the Korea Exchange, the KOSPI fell 26.54 points (0.44%) to close at 6,008.81. The KOSDAQ shed 13.15 points (1.57%) to finish at 823.88. The KRW/USD exchange rate ended the daily session at 1,338.3 won, down 6.8 won from the previous close.
The KOSPI opened higher, bolstered by easing concerns over memory semiconductor competition and expectations of stabilizing interest rates. While buying interest in chemical and logistics sectors provided support during the session, the market turned bearish as profit-taking hit major global semiconductor shares.
By sector, insurance fell 4.4%, medical and precision instruments 3.3%, finance 2.1%, and retail 1.5%. Large-cap stocks slid 0.5%, while mid-cap stocks remained flat and small-cap stocks rose 0.6%.
In terms of net buying, foreign investors and retail investors net-sold 1.1755 trillion won and 314.9 billion won worth of shares, respectively, while institutions net-bought 802.1 billion won. Foreign selling was particularly concentrated in the electric/electronics sector (1.0775 trillion won), followed by finance (94.6 billion won) and machinery/equipment (28.8 billion won).
The KOSDAQ fell as the global downturn in semiconductor stocks triggered a sell-off in domestic SAPE and machinery firms. Sector-wise, machinery and equipment dropped 4.4%, non-metals 4.1%, and medical and precision instruments 2.0%. While retail investors net-bought 386.3 billion won, foreign and institutional investors net-sold 217.7 billion won and 181.6 billion won, respectively.
ESS, Shipping, and Steel Stocks Rally on Alaska LNG Prospects
SM Bexel (010580) hit the daily upper limit, surging 29.93% on the back of its battery technology for low-earth orbit satellites. Samsung SDI (006400) rose 5.54% on expectations of improved earnings driven by its Energy Storage System (ESS) division, while WCP (393890) climbed 8.44% on positive forecasts for ESS demand. L&F (066970) gained 6.50% following reports of ongoing discussions regarding an LFP cathode material supply contract with LG Energy Solution.
Rising tensions in the Middle East bolstered shipping stocks. HMM (011200) rose 5.90% and STX Green Logis (465770) jumped 7.25%. Pan Ocean (028670) surged 10.53% amid hopes for higher shipping rates and projections of third-quarter operating profit reaching approximately 200 billion won.
Prospects for the Alaska Liquefied Natural Gas (LNG) development project boosted Daeyang Metal (009190) by 16.24% and Daehan Steel (084010) by 13.77%. TCC Steel (002710) also rose 8.50% amid a broader rally in the steel sector.
Stock Buybacks and Development Hopes Drive Gains
Yunichem (011330) hit the daily limit, rising 30.00% on anticipation surrounding the acquisition of U.S.-based Lumia. Chunil Express (006400) also skyrocketed 29.78% as market interest in the development of the Seoul Express Bus Terminal was reignited.
Shares linked to shareholder return policies also saw gains. Elcomtec (037950) climbed 11.78% after deciding to acquire 2 billion won worth of treasury shares, while TPC Global (130740) rose 14.06% following the execution of a 2 billion won stock buyback trust contract. The Pinkfong Company (403850) added 3.79% after announcing the cancellation of approximately 434,362 treasury shares, valued at roughly 5.16 billion won.
Dalba Global (483650) rose 4.64% on growth expectations tied to strong K-beauty exports. Doosan Fuel Cell (336260) edged up 1.97% after securing a total of 400 billion won in funding through the issuance of perpetual convertible bonds and perpetual bonds with warrants.
Conversely, Shinhan Financial Group (055550) fell 4.71% due to concerns over capital burdens arising from its decision to acquire Lotte Insurance.
