KOSPI Repeats 'Strong Open, Weak Close' Pattern as Investor Sentiment Stalls at 1,470 Won FX Barrier

(Seoul=Yonhap Infomax) Kyu Sun Lee – Despite a positive boost from artificial intelligence (AI) momentum on Wall Street, South Korea’s benchmark KOSPI index surrendered most of its early gains on November 25, weighed down by persistent pressure from the strong dollar-won exchange rate near the 1,470 won level.

As of 14:30 KST, the KOSPI was up 14.29 points, or 0.37%, at 3,860.35. The index had opened sharply higher, jumping 96.30 points (2.50%) to 3,942.36, but volatility increased as foreign investors took profits, pushing the index down to the 3,830 range during intraday trading. This marked a classic ‘strong open, weak close’ session, a pattern also seen in the previous trading day.

Even major catalysts—such as positive reviews for Alphabet Inc.’s ‘Gemini 3.0’ AI model and dovish comments from U.S. Federal Reserve officials supporting rate cuts—failed to offset the drag from the elevated exchange rate.

At the same time, the dollar-won exchange rate in Seoul’s foreign exchange market was trading at 1,474.70 won per dollar, down 2.40 won from the previous session. While the rate edged lower, it remains near its year-to-date high, forming a psychological barrier that continues to deter foreign capital inflows.

Both foreign and institutional investors maintained net selling positions in the main board, capping the upside for the index.

Among individual stocks, market heavyweight Samsung Electronics Co., South Korea’s largest company by market value, rose 2,700 won (2.79%) to 99,400 won, single-handedly supporting the index. Other notable gainers included ISU Petasys (+11.99%), Korea Electric Power Corp. (+6.22%), and Samsung C&T Corp. (+4.59%).

Conversely, bio and shipbuilding stocks suffered sharp declines. Samsung Biologics Co., a leading biopharmaceutical firm, plunged 9.84% to 1,613,000 won, while Samsung EPS Holdings tumbled 20.98%, further dampening investor sentiment. Shipbuilders Hanwha Ocean (-5.22%), HD Hyundai Marine Solution (-9.54%), and HD Korea Shipbuilding & Offshore Engineering (-2.76%) also posted significant losses.

Jae Won Lee, analyst at Shinhan Investment Corp., commented, “Expectations for a December rate cut and positive news from Google have entered the market, but the dollar-won exchange rate above 1,470 remains a burden for foreign capital inflows.”

Meanwhile, the KOSDAQ index turned negative, falling 2.04 points (0.24%) to 854.40 as of the same time.

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kslee2@yna.co.kr

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