On the 14th, the KOSPI held the 6,800 level after a fierce tug-of-war. After the market plunged the previous day, individual investors, with sentiment dented, were net sellers of 4.3 trillion won, while foreigners and institutions stepped in to buy and defended the index.
The KOSPI closed at 6,856.83, up 49.90 points, or 0.73%, from the previous trading day. The index opened lower and tried to reclaim the 7,000 level early in the session, but selling pressure pushed it down intraday to the 120-day moving average at 6,592 points. It later erased all losses as foreign and institutional buying flowed in and finished higher.
Selling by individuals was heavy. Individuals were net sellers of 4.15 trillion won on the day. Foreigners and institutions were net buyers of 961.6 billion won and 3.21 trillion won, respectively. Among institutions, financial investment, where exchange-traded fund (ETF) funds are tallied, bought a net 1.89 trillion won, pensions 86.8 billion won, and insurers 150.8 billion won.
Investor sentiment deteriorated as U.S. tech stocks fell across the board the previous day. Instability in the Middle East also continued. When the United States resumed clashes with Iran, Iran re-blockaded the Strait of Hormuz. After U.S. President Donald Trump threatened to impose a 20% transit fee, international oil prices surged to the $80 level.
U.S. Government Bonds yields also jumped, reviving the possibility of tightening by the Federal Reserve (Fed). Christopher Waller, a Federal Reserve governor, hinted at a hawkish stance ahead of the consumer price index (CPI) release, saying, "Depending on the inflation outcome, we could review monetary policy tightening measures in short order." The probability of a rate hike in Sep. rose to 51.2%.
Volatility was high in SK hynix shares, which had plunged the previous day. They opened lower, then rebounded, but swung repeatedly. During the session, a report said SK hynix's results could miss market expectations, denting sentiment. On the other hand, some continued to project that the semiconductor supercycle driven by expanded AI investment would persist.
Mirae Asset Securities said that while demand stability is secured by long-term agreements (LTA), speculative demand has waned, and it lowered its average selling price (ASP) forecasts for DRAM and NAND by 8% and 5%, respectively. Accordingly, it cut SK hynix's operating profit outlook for this year by 12%, from 70 trillion won to 62.7 trillion won.
Lee Kyung-min, a researcher at Daishin Securities, said, "Concerns that SK hynix's second-quarter results could fall short of market expectations, combined with the perception that positives have faded after the ADR listing, strengthened profit-taking pressure," adding, "However, the view that LTA expansions and the supercycle remain intact drew in bargain hunting and recouped the losses."
Samsung Electronics(005930) and SK hynix(000660) rose 3% to close around 260,000 won and 1.9 million won, respectively. Hyundai Motor sank 4% to close at 420,000 won. Samsung Life Insurance, KB Financial Group and others also finished lower.
The KOSDAQ index fell 1.92% to close at 783.98. It dropped 5% intraday, slipping below the 750 level, triggering a "sell sidecar." It later closed around the 780 level as individuals and institutions were net buyers of 73 billion won and 158.8 billion won, respectively.
Samsung Epis Holdings(0126Z0) secured a key technology for subcutaneous injection (SC) formulations, sending Alteogen(196170) down 12%. Investor sentiment cooled across biotech stocks. Battery stocks broadly, including EcoPro(086520), also tumbled.