Exchange rate exceeded 1,360 won… KOSPI threatens 2400 points to foreign and institutional ‘selling’

On the 2nd, when the won-dollar exchange rate broke the 1,360 won level for the first time in 13 years and 4 months, the KOSPI was pushed back to a level that threatened the 2,400 point for mass selling by foreigners and institutions.

On this day, the KOSPI closed at 2409.41, down 6.20 points (0.26%) from the previous day. This is the lowest since July 25 (2403.69) based on the closing price.

On the 2nd, the won/dollar exchange rate finished trading at 1,362.6 won per dollar, up 7.7 won. The closing price was the highest since April 1, 2009 (1,379.5 won). The KOSPI fell 6.20 points (0.26%) to 2,409.41 and the KOSDAQ closed at 785.88, down 2.44 points (0.31%). The photo shows the dealing room of Hana Bank’s main branch in Myeong-dong. yunhap news

The KOSPI opened at 2427.70, up 12.09 points (0.50%) from the previous day, but turned downward in the afternoon of the day. At one point during the day, it was pushed to 2402.67, but it held the 2400 line.

In the stock market, foreigners and institutions net sold 184.5 billion won and 132.5 billion won, leading the index down. Individuals alone made a net purchase of 293.6 billion won. As the dollar’s strength did not abate, foreign supply and demand, which had a major impact on the domestic stock market, took a hit.

In the Seoul foreign exchange market, the won-dollar exchange rate finished trading at 1362.6 won per dollar, up 7.7 won from the previous day’s closing price. It is the highest level since April 1, 2009 (1379.5 won) based on the closing price.

The exchange rate soared to 1363.0 won during the day, setting a new high. This is the highest level in 13 years and 4 months since April 21, 2009 (1367.0 won) based on high prices.

On this day, the KOSPI showed a sluggish appearance, digesting the negative factors that occurred in a row, such as the US’ restrictions on semiconductor exports to China and the expansion of the domestic trade deficit last month. It started upwards on the back of good economic indicators and the perception that the decline caused by bad news was excessive, but eventually turned to a downward trend.

The market is set to report the eurozone’s second-quarter gross domestic product (GDP) growth next week. Eurozone GDP growth is expected to drop to 0.3% from the previous quarter (0.6%), which is likely to further stimulate concerns about an economic recession.

The U.S. Federal Reserve’s (Fed) Federal Open Market Committee (FOMC) meeting this month is also growing vigilant. At this meeting, the base rate is expected to rise by 0.75 percentage points.

The U.S. non-agricultural employment data for August, released on the same day, is also noteworthy. With US economic data showing a solid trend, the Fed is highly likely to continue aggressive tightening by continuing to raise the benchmark interest rate.

At the top of the KOSPI market capitalization, the two largest semiconductor stocks Samsung Electronics (-1.54%) and SK Hynix (-0.75%) fell along with the sharp decline in the stock prices of US semiconductor companies Nvidia and AMD. LG Chem (-2.09%), NAVER (-0.85%) and Kakao (-1.68%) were also weak.

LG Energy Solutions (4.10%) was recently attracting attention as a beneficiary of the US Inflation Reduction Act (IRA), and foreign purchases were strong. Samsung Biologics (1.45%), Hyundai Motor (0.51%), Samsung SDI (0.17%) and Kia (0.75%) closed higher.

SK Chemicals (10.99%) soared sharply in the promotion of SK Discovery’s tender offer and incorporation of subsidiaries, and Skylife (6.14%) soared on the news that Skylife TV was merging Media Genie.

By industry, textile and apparel (1.65%), insurance (1.56%), and pharmaceuticals (0.56%) rose, while steel and metal (-2.48%), electricity and gas (-1.36%), and service (-0.80%). was weak.

The KOSDAQ index closed at 785.88, down 2.44 points (0.31%) from the previous day. The index started at 793.11, up 4.79 points (0.61%) from the battlefield, and showed an upward trend before turning downward.

On that day, the daily trading volume in the KOSPI and KOSDAQ markets was 7.19.4 trillion won and 5,787 trillion won, respectively.

Reporter Yoo Ji-hye [email protected]

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