Summary
- It said KOSPI and KOSDAQ opened lower as tensions between the United States and the European Union (EU) over Denmark’s Greenland intensified.
- It noted that on both KOSPI and KOSDAQ, retail investors were net sellers of 412.7 billion won and 34.2 billion won, respectively, while foreigners and institutions were net buyers in tandem.
- It said the won-dollar exchange rate is holding in the 1,480-won range, and the stock market is likely to be exposed to Trump-driven price volatility over the next two trading sessions.
KOSPI opened lower amid U.S.-driven negative news flow. Investor sentiment appears to have weakened as tensions between the United States and the European Union (EU) over Denmark’s Greenland escalated. However, the decline is narrowing as buying by foreigners and institutions comes in.
As of 9:03 a.m. on the 21st, KOSPI was down 55.43 points (1.13%) from the previous session at 4,830.32. After opening down 1.57% at 4,808.94, the index has been trending higher and paring losses.
In the main board market, retail investors are net sellers of 412.7 billion won. Foreigners and institutions are net buyers of 242.6 billion won and 182.3 billion won, respectively.
Blue chips were broadly in the red. Shipbuilders such as Hanwha Ocean (-3.94%) and HD Hyundai Heavy Industries (-3.59%) led declines, while Doosan Enerbility (-3.57%), LG Energy Solution (-2.11%), SK Square (-2.11%), Samsung C&T (-1.86%), Celltrion (-1.69%), Hanwha Aerospace (-1.53%), Samsung Biologics (-1.46%), Kia (-1.46%), and KB Financial Group (-1.05%) also fell in tandem.
The KOSDAQ index was down 21.53 points (2.21%) from the previous session at 954.84. After opening at 958.96, it has moved sideways around the 950 level.
In the KOSDAQ market as well, retail investors are net sellers of 34.2 billion won. Foreigners and institutions are net buyers of 29.1 billion won and 16.4 billion won, respectively.
Most KOSDAQ heavyweights were also lower, including Alteogen (-4.05%), LigaChem Bio (-3.54%), EcoPro (-2.85%), Kolon TissueGene (-2.7%), ABL Bio (-2.54%), Rainbow Robotics (-2.49%), Peptron (-2.44%), Hyundai Movex (-2.44%), Rino Industrial (-1.86%), and EcoPro BM (-1.81%).
The won-dollar exchange rate was at 1,480.2 won. The rate opened at 1,480.4 won, up 2.3 won from the previous session, and has remained above the 1,480 level.
Han Ji-young, a researcher at Kiwoom Securities, said, "As conflicts between the U.S. and Europe over the purchase of Greenland intensified, market rates rose. With concerns also emerging over Japan’s fiscal deterioration, we believe equity market resilience has weakened," adding, "Over the next two sessions, stocks are likely to be exposed to Trump-driven price volatility."
On the 20th (local time), all three major U.S. stock indexes fell. Investor sentiment froze as tensions between the United States and the European Union (EU) over Denmark’s Greenland escalated. The Dow Jones Industrial Average closed down 870.74 points (1.76%) from the previous session at 48,488.59. The Standard & Poor’s (S&P) 500 fell 143.15 points (2.06%) to 6,796.86, and the Nasdaq dropped 561.07 points (2.39%) to end at 22,954.32.
Jin Young-gi, Hankyung.com reporter young71@hankyung.com
