Growing caution ahead of FOMC and corporate earnings dampens sentiment; KOSPI drops 1.46%
KOSDAQ plunges 3.26% amid broad sector weakness, though select medical AI and robotics shares show resilience
South Korean benchmark indices finished lower across the board on October 26. Both the KOSPI and KOSDAQ closed in negative territory as caution heightened ahead of the U.S. Federal Open Market Committee (FOMC) meeting and major corporate earnings reports, compounded by headwinds from rising international oil prices and a weak U.S. stock market.
According to the Korea Exchange (KRX), the KOSPI closed down 80.83 points, or 1.46%, at 5,469.47. The tech-heavy KOSDAQ dropped 24.48 points, or 3.26%, to finish at 727.21. In the foreign exchange market, the won-dollar exchange rate closed daytime trading down 1.5 won at 1,323.1 won.
The KOSPI opened lower, pressured by surging global oil prices and overnight losses on Wall Street. As anxiety persisted ahead of the FOMC and major earnings releases, foreign investors stepped up selling, particularly targeting electrical & electronics, transportation equipment, and auto parts shares.
By sector, medical & precision instruments tumbled 5.9%, metals and general services each fell 3.5%, and machinery & equipment declined 3.2%. Large-cap stocks lost 1.3%, medium-cap stocks fell 2.7%, and small-cap stocks dropped 2.3%.
In the supply-and-demand breakdown, foreign investors net sold 698.3 billion won, while institutional and retail investors net bought 599.7 billion won and 59.9 billion won, respectively. Foreign selling was concentrated in electrical & electronics (581.1 billion won), finance (909 billion won), and IT services (42.9 billion won).
The KOSDAQ opened lower due to the weak U.S. market and rising oil prices, extending its losing streak to a third consecutive session as institutional selling intensified, primarily in electrical & electronics and machinery & equipment. By sector, non-metals fell 4.9%, metals dropped 4.5%, and pharmaceuticals declined 4.4%. Institutional investors net sold 127.8 billion won, while foreign and retail investors net bought 39.2 billion won and 85.0 billion won, respectively.
Selective Strength in Medical AI, Space Optical Communications, and Robotics
Lunit (328130) surged by the daily limit of 30.00% following news of a research collaboration with U.S.-listed Summit Therapeutics to develop AI biomarkers for immuno-oncology drugs. Vuno (338220) also jumped 29.95% amid a broader buying wave in medical AI-related shares.
Seers Technology (458870) advanced 17.51% on news that its AI-powered patient bed monitoring system, "thynC," has been adopted by Ajou University Hospital. The system is currently operational across 342 beds, with plans to expand up to 1,100 beds.
Contec (451760) climbed 29.89%, fueled by optimism over business expansion following its successful demonstration on October 23 of receiving data between a U.S. low-Earth orbit satellite and a ground optical communications station in Jeju.
Robotics-related stocks also showed selective strength. Roborized (108490) gained 8.56% on news of a contract to supply approximately 750,000 small robot actuators to France's Pollen Robotics. EnRobotics (138360) rose 4.68% on expectations of a growing robotics market.
Noon (376930) soared 29.94%, drawing attention from a third-party paid-in capital increase worth 2.75 billion won that involves a change in its controlling shareholder.
Sands Lab (411080) advanced 8.70% on growing demand for information security following a warning from U.S. cybersecurity authorities regarding vulnerabilities in PHP software.
Tomato System (393210) rose 7.15% after disclosing a contract worth approximately 7.3 billion won with the Daegu Gyeongbuk Institute of Science and Technology (DGIST) to build a next-generation integrated information system.
HDC Hyundai Development Company (294870) edged up 1.59% after being selected as the main contractor for the Geumjeong Station Area District 1 redevelopment project in Gunpo, Gyeonggi Province.
Conversely, Playwith (023770) tumbled 15.19% as the initial sales performance of its new mobile game, "Seal M2," fell short of market expectations.
LIG Defense & Aerospace (079550) plunged 9.78% on reports that the Defense Acquisition Program Administration (DAPA) is reviewing additional sanctions.
Haitai Confectionery & Foods (101530) dropped 15.01% on its first day of resumed trading following a suspension over accounting standard violations.
