[KRX deadline | October 12] KOSPI 6400 line collapse... Net selling by foreign investors of KRW 2 trillion

KOSPI falls for 4 consecutive trading days... Plunged 3.65% due to caution over earnings season

KOSDAQ also collapsed at 850... Shipping and Honam semiconductor stocks are strong

On the 12th, the domestic stock market, KOSPI and KOSDAQ both plummeted. KOSPI fell for four consecutive trading days due to large-scale selling by foreign investors, falling below the 6,400 level, and KOSDAQ also fell below the 850 level due to simultaneous selling by institutions and foreign investors.

According to the Korea Exchange, KOSPI finished trading at 6,384.24, down 241.69 points (3.65%) from the previous trading day. KOSDAQ closed at 849.19, down 43.08 points (4.83%). The won-dollar exchange rate ended the week at 1,335.1 won, down 7.7 won from the previous trading day.

KOSPI started lower at the end of last week despite strong overseas stock markets. As net purchases by other corporations decreased due to share purchases, the downward support power of the index weakened, and the decline increased due to continued foreign selling and increased caution during the earnings season.

By industry, machinery and equipment fell 6.7%, construction fell 4.5%, electricity and electronics fell 4.5%, and medical and precision equipment fell 4.2%. Large-cap stocks fell 3.8%, mid-cap stocks fell 2.6%, and small-cap stocks fell 1.8%.

In terms of supply and demand, foreign investors net sold 2.0265 trillion won and institutions net sold 116 billion won, while individuals net bought 1.4741 trillion won. Foreign Investors net sold 1.7094 trillion won in electricity and electronics, and net sold 322.7 billion won and 54.7 billion won in finance and machinery and equipment, respectively.

KOSDAQ fell for three consecutive trading days due to simultaneous selling by institutions and foreign investors. By industry, electricity and electronics fell 6.4%, finance fell 6.0%, and transportation equipment and parts fell 5.7%. Institutions sold net 223 billion won and foreign investors net sold 28.3 billion won, while individuals net bought 249 billion won.

Shipping stocks are strong due to disruption in Hormuz traffic... Honam semiconductor-related stocks soar

Shipping stocks showed a strong performance due to traffic disruptions in the Strait of Hormuz and rising sea freight rates. HMM (011200) rose 4.81%, STX Green Logies (465770) rose 8.99%, Pan Ocean (028670) rose 6.97%, and Korea Shipping (005880) rose 2.71%.

Related stocks also surged in anticipation of the creation of a semiconductor cluster in the Honam area. Seosan (079650) rose 30.00% to hit the upper limit, Kumho Electric (001210) rose 29.93%, Kumho Construction (002990) rose 20.29%, and Namhwa Engineering & Construction (091590) rose 13.18%. SK Group Chairman Chey Tae-won's visit to Gwangju stimulated related expectations.

Hanwha M&S (0220W0) soared 24.01% on the news of Vice President Kim Dong-seon's tender offer. Dongyang Express (084670) rose 8.68% due to continued expectations for the redevelopment of the Seoul Express Bus Terminal.

Some bio and distribution stocks rise... Major stocks plunge due to performance concerns

Daehwa Pharmaceutical (067080) rose 8.58% on news of the addition of Chinese indications for oral anticancer drugs. Celltrion (068270) rose 0.45% on record-high performance in the third quarter, and E-Mart (139480) rose 3.29% on the news of Starbucks payment recovery.

On the other hand, DN Automotive (007340) plunged 20.43% due to suspicions of injections to promote lead emissions. LG Innotek (011070) fell 16.17% due to poor performance in the third quarter, and Hyosung Heavy Industries (298040) fell 10.10% due to concerns about performance.

S-Oil (010950) fell 5.69% as U.S. President Trump's remarks about a ceasefire related to Russian energy were highlighted.