The KOSPI and KOSDAQ indices, which had sharply declined ahead of the U.S. 'Jackson Hole meeting,' ended the trading session on the 20th with reduced losses. The weakened investment sentiment also caused significant fluctuations in leading sectors such as shipbuilding, defense, and nuclear power.
The KOSPI index closed at 3130.09 on this day, down 21.47 points (0.68%) from the previous day. The KOSPI index showed weakness from the early session as individuals dumped their sell orders. Foreign investors also shifted to a selling position, pushing the index down to 3079.27 during the trading session. It was the first time since July 8 that the KOSPI index fell below the 3100 level during the session.
Fortunately, institutions managed to turn the index around by net buying 516.4 billion won in the KOSPI market, allowing it to regain the 3100 level in the afternoon.
There appeared to be heightened caution ahead of the Jackson Hole meeting. The Jackson Hole meeting is an annual economic policy symposium held every August in Jackson Hole, Wyoming. U.S. Federal Reserve Chair Jerome Powell often offers 'signals' regarding the direction of monetary policy at this meeting, drawing the attention of investors.
Lee Jae-won, a researcher at Shinhan Investment Corporation, noted, 'Attention will be focused on the minutes of the July Federal Open Market Committee (FOMC), which will be released early in the morning, to gauge the direction of Jerome Powell's remarks at the Jackson Hole meeting this weekend.'
There was also an impact from the sharp decline of U.S. tech stocks overnight. Sam Altman, CEO of OpenAI, mentioned the possibility of an 'artificial intelligence (AI) industry bubble,' which caused stock prices of major tech companies, including NVIDIA, to fall. In the KOSPI market, Samsung Electronics saw a slight rise, but the semiconductor and IT sectors, including SK hynix, remained generally weak.
Leading sectors that had driven the domestic stock market also struggled. Particularly, the stock prices of the nuclear power sector saw significant declines. Discussions arose regarding agreements made between Korea Electric Power Corporation, Korea Hydro & Nuclear Power, and the U.S. company Westinghouse regarding a nuclear power project in the Czech Republic. Stocks such as Doosan Enerbility, KEPCO KPS, Woori Technology, and KEPCO E&C closed at lower prices than the previous day. However, as bargain hunting began, the losses were reduced from the intraday lows.
The situation in the KOSDAQ market was similar. The KOSDAQ index closed at 777.61, down 10.35 points (1.31%) from the previous day. The KOSDAQ index also fell to 766.57 during the session before reducing its losses in the afternoon. It was the first time since July 2 that the KOSDAQ index fell into the 760 range during the session.
In the KOSDAQ market, individuals were the only ones actively buying, participating in a 'buying spree' worth 150 billion won. Foreigners and institutions maintained a selling advantage, selling 36 billion won and 90 billion won, respectively.
In the KOSDAQ market, there were 1,263 declining stocks, while only 370 stocks rose. Among the top 10 by market capitalization, only Peptron and Sam Chun Dang Pharm saw their stock prices rise from the previous day, while leading stocks such as Alteogen, Ecopro, ECOPRO BM, and PharmaResearch remained weak.
As of the closing time of the trading session, the exchange rate of the Korean won against the U.S. dollar recorded 1398.4 won, which was 7.5 won higher than the previous day.