[Opening Market] KOSPI Opens Lower at 6,500 Level Amid Foreign Selling

On the morning of Oct. 12, the won-dollar exchange rate, KOSPI and KOSDAQ indices are displayed on the electronic board at the dealing room of Hana Bank headquarters in Jung-gu, Seoul. (Yonhap) On the morning of Monday, Oct. 12 after resuming trading early in the week following the Hangeul Day holiday on October 9, the domestic financial market is engaging in a tense battle as the uncertainty of the global macro environment intersects with the earnings momentum of major companies. On the previous trading day, positive earnings issues centered on large-cap semiconductor stocks were highlighted, with Samsung Electronics suggesting the possibility of entering the 100 trillion won (about $74.62 billion) range in quarterly operating profit for the first time in history. However, caution over United States employment indicators and the monetary policy of the Federal Reserve (Fed) acted simultaneously, causing the KOSPI to show mixed movements within the flat range in early trading. This article provides an in-depth analysis of the specific opening conditions of the domestic stock market as of 10:00 a.m., supply and demand by investor type, the fluctuation status of top market capitalization stocks, and the flow of the foreign exchange market. As of 10:00 a.m., the KOSPI index opened at 6578.17, which is 47.76 points (0.72%) lower than the previous trading day, and is battling around the 2,600 mark with slight fluctuations. In early trading, low-point buying by institutions and defensive buying by individuals are flowing in, while profit-taking volume following short-term surges and the supply and demand volatility of foreigners appear to be limiting the upper bound of the index. The KOSDAQ index is also seeing an inflow of selective buying centered on technology stocks, but it is recording limited volatility in tandem with the breather taken by KOSPI large-cap stocks. The index started at 885.53, which is 6.74 points (0.76%) lower than the previous close, and is expanding its decline. Market experts analyze that investors are taking a wait-and-see approach ahead of the announcement of major economic indicators scheduled for this week, along with the mixed performance of overseas stock markets during the holiday period. Institutions and Individuals Defend Amid Net Selling by Foreigners In the KOSPI market, passing the 10:00 a.m. mark, foreign investors are showing a net selling trend, offloading approximately 185 billion won (about $138 million) worth of stocks. Profit-taking volume driven by global portfolio rebalancing and exchange rate volatility constitutes the majority. Institutional investors are playing a leading role in defending the index, recording a net purchase of approximately 132 billion won. Low-point buying is flowing in, centered on pension funds and investment trust companies. Individual investors are also absorbing the volume released by foreigners, showing a net buying advantage of approximately 53 billion won. A tendency to actively engage in low-point buying whenever the index falls is clearly observed. In the KOSDAQ market, individuals are buying 44.6 billion won, while foreigners and institutions are selling 39.4 billion won and 5.2 billion won, respectively. Top Large-Cap Stocks Show Mixed Fluctuations Depending on Trading Entities Key KOSPI top market capitalization stocks, including bellwethers Samsung Electronics and SK hynix, are showing mixed fluctuations depending on industry expectations and the trading battles of supply and demand subjects. Samsung Electronics: Despite the preliminary earnings announced on the previous trading day and expectations for future performance, foreign selling volume is emerging, and it is trading at the 71,200 won level, down 0.6% from the previous trading day. Although a trend of improving profitability in high bandwidth memory (HBM) and general DRAM is being confirmed, short-term profit-taking pressure prevails. Buoyed by news of accelerated expansion of AI semiconductor production facilities and solid demand centered on high value-added products, SK hynix is leading the strong trend by recording the 184,000 won level, up 1.2%. LG Energy Solution: It is showing a slight rebound of 0.4% due to expectations of a gradual recovery in the secondary battery industry, but the extent of the increase is limited due to concerns over stagnant global electric vehicle demand. Hyundai Motor and Kia: The finished vehicle industry has taken a direct hit from the foreign selling trend, undergoing corrections with declines of 1.1% and 0.8%, respectively. Top Bio Stocks (Samsung Biologics, Celltrion): Defensive buying is flowing in, supporting the downside of the index with a flat trend and a slight increase of 0.5%, respectively. Among the top 10 KOSDAQ market capitalization stocks, 9 stocks are falling, excluding HLB (0.33%). In particular, the weakness of Leeno Industrial (-7.62%) and Rainbow Robotics (-4.66%) is prominent. Alteogen, EcoPro BM, Jusung Engineering, Simmtech, and EcoPro are showing declines in the 2% range, while EO Technics, Wonik, and others are showing a slightly bearish flat trend. Won/Dollar Exchange Rate Starts in the Mid-1,340 Won Range, Up Slightly from the Previous Trading Day (Weak Won) In the Seoul foreign exchange market, the won-dollar exchange rate started and is fluctuating in the mid-1,340 won range, up slightly (weak won) compared to the closing price of the previous trading day. Amid upward pressure on the global dollar, the reverse remittance demand for net selling funds by foreign investors in the domestic stock market is acting as a factor aggravating the upward pressure on the exchange rate. However, the rapid surge is showing signs of calming down as caution over fine-tuning by authorities and export bill negotiation (dollar selling) volume from export companies support the upper bound. Today, the domestic stock market is experiencing a day where differentiation within large-cap semiconductor stocks (Samsung Electronics vs. SK hynix) is clearly appearing in the process of digesting global variables following the holiday gap. Unless the supply and demand of foreigners turn to net buying, a stock-specific market is highly likely to continue rather than a strong rebound of the index. Investors need to pay attention to upcoming United States inflation indicators and changes in the fourth-quarter earnings outlook guidance of major companies.