On the 25th, the KOSPI index slipped slightly to the 3,460 level. As the U.S. New York stock market pulled back overnight, the won-dollar exchange rate is challenging the 1,400-won range, weighing on share prices.
As of 9:11 a.m. that day, the KOSPI index was down 10.32 points (0.3%) from the previous trading day at 3,461.82. The KOSPI opened at 3,458.98, down 13.16 points (0.38%) from the day before.
In the main board, individual investors alone show a net buying advantage of 60 billion won. Foreigners and institutions moved to "sell," by 40 billion won and 23 billion won, respectively.
Market heavyweights on the main board are mixed. Share prices of semiconductor bellwethers such as Samsung Electronics and SK hynix are down more than 1%. Samsung Biologics, Hyundai Motor, and KB Financial are also weaker. Meanwhile, on the back of U.S. President Trump's hard-line remarks toward Russia, defense stocks such as Hanwha Aerospace and Hyundai Rotem are edging up. HD Hyundai Heavy Industries, KB Financial, and Celltrion are also firm.
At the same time, the KOSDAQ index was down 4.3 points (0.5%) from the previous trading day at 856.64. The KOSDAQ started at 858.45, down 0.29% from the day before.
On the KOSDAQ, individual investors alone are net buyers of 45 billion won, supporting the index. Foreigners and institutions show a selling advantage of 36 billion won and 8 billion won, respectively.
Market heavyweights on the KOSDAQ are also mixed. Share prices of Alteogen, ECOPRO BM, Ecopro, and Rainbow Robotics are rising. Peptron, PharmaResearch, Regacap Bio, and ABL Bio are trading at lower prices than the day before.
Lee Seong-hun, a Kiwoom Securities researcher, said, "With an unusually long Chuseok holiday ahead, there is a possibility that profit-taking for portfolio rebalancing will emerge," and noted, "Considering that the KOSPI's average return over the five trading days immediately before Chuseok since 2010 has been negative, there is a need to prepare for supply-demand volatility."
Overnight, the U.S. New York stock market ended lower for a second straight day on the fallout from Federal Reserve Chair Jerome Powell's comment about "overvalued stocks." The Dow Jones Industrial Average fell 0.37% from the previous trading day. The U.S. Standard & Poor's (S&P) 500 fell 0.28%, and the Nasdaq Composite slipped 0.33%.
Meanwhile, early that morning the won-dollar exchange rate closed at 1,403.8 won per U.S. dollar, up 11.2 won from the previous session's closing price, marking the highest level since May this year.
Moon Da-un, a Korea Investment & Securities researcher, explained, "The won is currently facing its own depreciation pressure from uncertainty over negotiations on investment with the United States, while also facing global strong-dollar pressure as expectations for interest rate cuts recede."
In the Seoul foreign exchange market that day, the won-dollar exchange rate was 1,402.00, down 3 won from the previous trading day.