KOSPI closes at 4135, down 0.2%… won·dollar exchange rate 1470 won

Korea Economic Daily

Summary

The KOSPI closed at 4135, down 0.21%, and institutions were net sellers of 344.3 billion won.
The KOSDAQ closed up for the third consecutive trading day, finishing 0.39% higher, with net buying by foreigners and institutions.
Ahead of the December FOMC, the market is showing a wait-and-see stance, focusing on the possibility of a rate cut and next year's rate path.

KOSDAQ 'up'

"Waiting game prolonged ahead of December FOMC"

The KOSPI closed lower. The decline was not large. It appears a wait-and-see sentiment entered the market ahead of the December Federal Open Market Committee (FOMC).

On the 10th, the KOSPI closed at 4135, down 8.55 points (0.21%) from the previous day. In early trading the KOSPI rose as high as 4172.64 and was cruising, but it turned down and gave up the 4140 level. As of that day, the KOSPI had fallen for two consecutive trading sessions.

In the stock market, institutions were the sole net sellers at 344.3 billion won. Foreigners and individuals were net buyers of 296.4 billion won and 18.6 billion won, respectively.

Top-cap KOSPI stocks mostly fell, including Hanwha Aerospace (-3.85%), Samsung C&T (-1.79%), Hyundai Motor (-1.47%), Naver (-1.41%), KB Financial (-1.19%), HD Hyundai Heavy Industries (-1.04%), Celltrion (-0.85%), and LG Energy Solution (-0.45%).

On the other hand, SK Hynix rose 3.71%. This followed reports that it is considering listing its treasury shares on the U.S. market as American Depositary Receipts (ADRs). ADRs are certificates issued based on foreign companies' shares held by a U.S. depositary institution, allowing those shares to be traded on U.S. exchanges with the same effect as shares.

The KOSDAQ index closed at 935, up 3.65 points (0.39%) from the previous day. As of that day, the KOSDAQ had risen for three consecutive trading sessions.

In the KOSDAQ market, foreigners and institutions were net buyers of 125.4 billion won and 0.9 billion won, respectively. Individuals were net sellers of 78.6 billion won.

Movements among top-cap KOSDAQ stocks were mixed. ABL Bio (9.02%), Samchundang Pharm (5.27%), Peptron (5.06%), Rigachem Bio (3.11%), Rainbow Robotics (2.72%), and Kolon TissueGene (2.1%) rose. Pescaro, which was listed on the KOSDAQ market that day, closed at 27,100 won, a surge of 74.84% from the offering price.

Conversely, L&F (-2.3%), EcoPro BM (-1.43%), EcoPro (-0.85%), PharmaResearch (-0.77%), HLB (-0.71%), and Voronoi (-0.68%) fell.

The won·dollar exchange rate closed at 1,470.4 won, down 1.9 won from the previous day.

Kang Jin-hyeok, a researcher at Shinhan Investment Corp., explained, "The KOSPI is unable to find direction and is alternating between rises and falls," adding, "The waiting game is lengthening ahead of the December FOMC."

The FOMC will begin a two-day meeting on the 9th (local time). A 25 bp rate cut is widely expected at this meeting. The market has already priced in a rate cut and is focusing on the path of rates next year. The FOMC will release the Summary of Economic Projections (SEP) and the dot plot at this meeting.

Young-gi Jin, Hankyung.com reporter young71@hankyung.com