[KRX deadline | October 29] KOSPI 6000 points returned in one day... Institutional net selling of KRW 446.5 billion

Samsung Electronics' shareholder return expectations weaken, Czech nuclear power plant negotiations break down... KOSPI fell 1.24%

KOSDAQ also fell 2.34%... LED new technology and bio industry individual stocks are strong

On the 29th, the domestic stock market, KOSPI and KOSDAQ both fell. Despite the U.S. Federal Reserve's (Fed) freeze on interest rates and the strong U.S. stock market, expectations for shareholder return policies of major domestic companies have weakened and concerns about poor performance of some companies have been highlighted, leading to increased selling. In particular, as institutional selling was concentrated around the electrical and electronics industries, KOSPI fell to the 6,000 mark in one day.

According to the Korea Exchange, KOSPI ended trading at 5937.66, down 74.78 points (1.24%) from the previous trading day. KOSDAQ closed at 753.23, down 18.05 points (2.34%). The won-dollar exchange rate ended weekly trading at 1336.8 won, down 0.9 won from the previous trading day.

KOSPI started lower the previous day despite the U.S. Federal Reserve's freeze on the benchmark interest rate and the strong U.S. stock market. As lowered expectations for Samsung Electronics' additional shareholder return plan and poor performance of major U.S. companies weighed on investor sentiment, institutional selling expanded, especially in the electrical and electronics industries.

By industry, construction fell 5.7%, machinery and equipment fell 5.3%, entertainment and culture fell 3.6%, and chemicals fell 3.0%. Large-cap stocks fell 1.3%, mid-cap stocks fell 0.9%, and small-cap stocks fell 1.0%.

In terms of supply and demand, institutions net sold 446.5 billion won, while foreigners and individuals net bought 68.1 billion won and 33.4 billion won, respectively. Foreigners net purchased 90.7 billion won in electricity and electronics, 58.4 billion won in transportation equipment and parts, and 42.2 billion won in metals.

KOSDAQ fell for the first time in three trading days due to increased selling by foreigners and institutions amid caution following the performance announcements of major U.S. companies. By industry, transportation equipment/parts and machinery/equipment fell 3.4%, and medical/precision equipment fell 3.1%, respectively. Foreigners and institutions net sold 130.6 billion won and 75.4 billion won, respectively, while individuals net bought 216.6 billion won.

Individual stocks soar due to LED new technology and good performance

Seoul Semiconductor (046890) rose 29.93% on news of the development of ultra-small light emitting diode (LED) technology that produces white light without rare earth elements. Subsidiary Seoul Viosys (092190) also rose 30.00% and hit the upper limit.

Hanwha Vision (489790) soared 22.14% due to good performance in the third quarter. Consolidated sales were KRW 573.4 billion, an increase of 35.6% compared to the same period last year, and operating profit was KRW 102.6 billion, an increase of 183.3%.

Rokit Healthcare (376900) rose 21.79% on the news of the application for expansion of indications for European medical device certification (CE MDR) for its artificial intelligence (AI)-based cartilage regeneration platform.

Hanmi Pharmaceuticals (128940) rose 5.14% on the news of the start of domestic prescriptions for the domestically produced obesity treatment drug ‘Epee’.

TNE Korea (0053F0), which was newly listed on KOSDAQ on this day, rose 40.52% from its public offering price of 15,300 won.

Related stocks strengthen on favorable public offer and merger news

KINX (093320) rose 13.28% from the previous day on the news of an agreement on the terms of the tender offer with Macquarie, and Kolmar BNH (200130) rose 7.26% on the news that it had decided to merge with HNG, a 100% subsidiary.

Bitsaem Electronics (072950) rose 2.56% as expectations continued for increased investment in optical communication infrastructure due to the spread of AI data centers.

On the other hand, Daewoo Engineering & Construction (047040) fell 18.57% and Doosan Energy (034020) plunged 7.65% on the news of the end of negotiations for the construction contract for the Dukovany nuclear power plant in the Czech Republic. Korea Hydro & Nuclear Power terminated the construction contract negotiations with the Daewoo Engineering & Construction and Doosan Energy consortium as they were unable to narrow differences of opinion on key conditions.

Samsung Electronics (005930) fell 4.13% as market expectations weakened as it decided to announce a detailed execution plan for remaining shareholder return resources and the next shareholder return policy at the end of January next year.

LG Energy Solution (373220) fell 8.60% due to concerns over the burden of stock supply as its largest shareholder, LG Chem, decided to dispose of its shares worth about 2.5 trillion won.

Samsung SDS (018260) saw sales and operating profit increase in the third quarter compared to the same period last year, but its operating profit ratio fell by 7.19%, falling from 6.8% to 6.4%.

HD Hyundai Heavy Industries (329180) fell 4.73% as its operating profit in the third quarter fell below market expectations and concerns were highlighted about intensifying competition for orders due to the expansion of production capacity in the Chinese shipbuilding industry.