On the 10th, the KOSPI was stuck in a range, as heavyweight, large-cap stocks by market value fell across the board despite simultaneous buying by institutions and foreigners. The index swung back and forth without finding direction. Still, the rotation continued, and financials such as bank holding companies and securities gained on expectations for dividends.
The KOSPI closed at 5,301.69, down 3.65 points (0.07%) from the previous session. After rising more than 1% early in the session, the KOSPI turned lower intraday as buying by foreign and institutional investors lost steam, but fortunately finished around flat. Institutions and foreigners were net buyers of 564.1 billion won and 142.3 billion won, respectively, while individuals sold 872.9 billion won worth of shares.
On the main board, weakness was pronounced among large caps that had led recent gains. Hanwha Aerospace slumped nearly 4%, and SK Square fell 3.55%. Doosan Enerbility (-1.36%), SK hynix (-1.24%), LG Energy Solution (-1.01%), and Samsung Electronics (-0.36%) also ended lower.
By contrast, dividend plays such as banks and securities stood out. NH Investment & Securities jumped more than 6% on the day, and Shinhan Financial Group also posted gains of more than 4%. Samsung Securities (3.24%), Hana Financial Group (2.86%), KB Financial (2.72%), and BNK Financial Group (1.29%) also rose.
Lee Jae-won, a researcher at Shinhan Investment & Securities, said, "Because U.S. futures were slightly weaker during the session, top market-cap names gave back gains and added pressure to the KOSPI," but added, "With the seasonal effect for dividend plays at the start of the year, not only traditional high-dividend names such as bank holding companies and securities but also general nonfinancial holding companies showed a positive trend."
The KOSDAQ closed at 1,115.20, down 12.35 points (1.10%) from the previous session. The KOSDAQ had expanded gains to more than 1% early, then reversed lower and failed to recover.
On the KOSDAQ, foreigners and institutions were net sellers of 216.6 billion won and 80.9 billion won, respectively, while only individuals bought 323.7 billion won worth of shares.
Among top KOSDAQ names by market cap, red turned to blue across the board. Sam Chun Dang Pharm plunged 5%, while Kolon TissueGene (-4.49%), Rainbow Robotics (-2.77%), LEENO Industrial (-2.42%), EcoPro BM (-2.18%), EcoPro (-2.07%), Alteogen (-2.07%), ABL Bio (-1.80%), and HLB (-1.14%) fell.
The researcher said, "Because large-cap semiconductor stocks were weak, losses widened among So-Bu-Jang (materials, parts, equipment) names," adding, "As stock market sentiment deteriorates, volatility is expanding, centered on small and mid-caps with less dividend appeal."