KOSDAQ Drops 1.5% as Institutions Sell Off; Hanwha Ocean Plummets on Sanctions

The KOSPI index, which hit a record high during intraday trading on the 14th, turned downward in the afternoon. Investor sentiment appears to have weakened as concerns over the U.S.-China trade dispute resurfaced. The KOSDAQ index also fell nearly 1.5%.

On the day, the KOSPI index closed at 3,561.81, down 22.74 points (0.63%) from the previous trading day. It had risen to 3,646.77 in the early session, marking an all-time high during intraday trading. However, the index turned downward in the afternoon as institutions began selling shares for profit-taking.

Institutions sold 948.9 billion Korean won worth of stocks in the securities market, dragging down stock prices. Individuals and foreigners were net buyers, purchasing 500.8 billion Korean won and 392.4 billion Korean won worth of stocks, respectively.

Samsung Electronics, which announced better-than-expected third-quarter earnings on the day, rose to 97,500 Korean won during intraday trading, fueling expectations of reaching 100,000 Korean won per share. However, it eventually fell 1.82%. SK Hynix, which had surged over 5% in the early session, also declined 0.84% in the afternoon.

The domestic stock market's weakness was attributed to renewed anxiety over U.S.-China trade tensions. As the two countries clashed in the shipping and shipbuilding sectors, the Chinese government announced sanctions on five U.S. subsidiaries of Hanwha Ocean in the afternoon, exacerbating the market's decline. Hanwha Ocean plummeted 5.76% on the news.

Major market-cap-weighted stocks such as Hanwha Aerospace (-6.04%), HD Hyundai Heavy Industries (-4.06%), Doosan Enerbility (-2.32%), and KB Financial (-0.63%) also closed lower. In contrast, LG Energy Solution rose nearly 7%, driven by strong third-quarter earnings and Tesla's overnight surge. Hyundai Motor (2.06%) and Samsung Biologics (0.69%) also ended higher.

The KOSDAQ index closed at 847.96, down 12.53 points (1.46%) from the previous trading day. On the KOSDAQ market, foreigners and institutions were net sellers, offloading 150.8 billion Korean won and 120.1 billion Korean won worth of stocks, respectively, while individuals were net buyers, purchasing 276.3 billion Korean won worth of stocks.

Most of the top market-cap-weighted KOSDAQ stocks also declined. Peptron (-4.97%), PharmaResearch (-4.47%), HLB (-3.30%), Rigas Pharm (-3.10%), ABL Bio (-1.64%), and Sam Chun Dang Pharm (-0.74%) fell. EcoPro BM (5.01%), EcoPro (3.70%), and Alteogen (0.45%) closed higher.

Lee Jae-won, a Shinhan Securities researcher, said, "The KOSDAQ market was weak due to profit-taking in semiconductor materials, parts, and equipment stocks, despite strength in secondary battery and robotics sectors."

The researcher added, "While external uncertainties such as U.S.-China trade tensions and political instability in Japan persist, it is necessary to focus on companies with clear earnings momentum, as demonstrated by Samsung Electronics' performance, given that we are at the beginning of the third-quarter earnings season."

KOSPI Dips in Afternoon on U.S.-China Trade Fears