The KOSPI index inched down on the 9th. Analysts said caution grew ahead of the U.S. Federal Open Market Committee (FOMC) meeting two days away. Still, the drop was limited, keeping the index in the 4,140 range. The U.S. benchmark interest rate to be discussed at the FOMC is set to be announced at dawn on the 11th Korea time. The KOSDAQ index rose slightly as secondary battery and biotech stocks rebounded.
The KOSPI ended the day at 4,143.55, down 11.30 points (0.27%) from the previous session. The index opened at 4,129.77, down 25.08 points (0.60%) from a day earlier, but pared losses during the session.
A wave of foreign selling weighed on the index. Foreign investors were net sellers in the 300 billion won range during the session and reduced their selling before the close. Institutions were net buyers of about 50 billion won. Retail investors showed net buying during the session but trimmed it just before the close, ending with 11.6 billion won in net sales.
Caution over the FOMC, now two days away, grew in the market. Lee Kyung-min, a researcher at Daishin Securities Co., said, "Until the FOMC results and the dot plot are released, prudence and a wait-and-see mood may prevail in the market."
Researcher Lee Jae-won of Shinhan Investment & Securities also explained, "While the probability of a rate cut stands at 87.3%, uncertainty could widen due to divisions among U.S. Federal Reserve members on the dot plot, heightening caution."
Meanwhile, weakness in major semiconductor stocks kept the market stock-specific. SK hynix was again designated as an investment caution issue for the first time in about a month. Both Samsung Electronics and SK hynix ended down more than 1%.
Secondary battery shares, which had surged the previous day, paused after just one day. LG Energy Solution fell 1.77% at the close, and Samsung SDI and POSCO Holdings were also weak. The move was largely driven by U.S. investment bank Morgan Stanley lowering its investment rating on Tesla to "equal-weight."
In contrast, the KOSDAQ index, which opened lower, rebounded in the morning session and closed slightly higher. The KOSDAQ finished at 931.35, up 3.56 points (0.38%) from the previous session.
Retail investors led the KOSDAQ market. While individuals were net buyers of 231 billion won, foreigners and institutions were net sellers of 58.3 billion won and 122.8 billion won, respectively.
Six of the top 10 KOSDAQ market capitalization stocks rose. Analysts said sector rotation continued on expectations for government measures to revitalize the KOSDAQ market.
Researcher Lee Jae-won said, "In the KOSDAQ market, large caps led by EcoPro BM, the next No. 1 by market cap, were strong and lifted the index," adding, "Bargain hunting flowed into the biotech sector, where investor sentiment had been sluggish."