(2024 stock market settlement) KOSPI, swayed by foreign winds this year, eventually breaks out of the 2,400 mark

On the last day of the year, KOSPI closed below the 2,400 mark.
KOSPI fell 9.6% this year, underperforming major country stock markets
Amid political uncertainty, foreign selling and Samsung Electronics’ sluggish performance dragged down stock prices.

KOSPI ended 2024 without being able to maintain the 2,400 level. KOSPI, which showed strength in the first half of the year due to expectations of a value increase, continued to show sluggish trends in the second half of the year as it was swayed by various external trends, showing a trend that was contrary to the U.S. stock market, which showed unrivaled strength by breaking an all-time high. Foreign selling continued since the second half of the year along with political uncertainty, leading stocks

Samsung Electronics

Concerns about this year are cited as factors causing the stock market slump.

According to the Korea Exchange on the 31st, KOSPI closed the last trading day of the year at 2399.49, down 0.22% from the previous day. KOSPI fell 9.6% compared to the end of the previous year. KOSDAQ finished at 678.19. It rose 1.83% compared to the battlefield, but fell 21.7% compared to the end of the previous year.

KOSPI, which started at 2669.81 on the first day of this year, showed an upward trend due to expectations of the value-up program in the first half of the year, rising to 2891.35 on July 11, hitting a new high. However, since August, concerns about a global economic downturn, encarriage trade, Trump trade, and political uncertainty have continued to pull the KOSPI down. KOSPI, which rose 3.6% in 2021, fell 24.9% in 2022 and succeeded in an upward turn by rising 18.7% last year, but fell again this year.

Kang Jin-hyuk, a researcher at Shinhan Investment & Securities, said, “KOSPI and KOSDAQ ended this year with poor performance, falling 9.6% and 21.7%, respectively, compared to the beginning of the year.” “Excluding June and December when the closing price was the same as the previous month, it fell in 7 out of 9 months,” he analyzed.

KOSPI also performed poorly compared to stock markets in major countries. In the first half of the year, it rose 5.4%, ranking 12th among 21 countries (G20+Taiwan), but in the second half of the year, it recorded a 14% drop, dropping to 20th place, almost last place.

Lee Woong-chan, a researcher at iM Securities, said, “This year, the domestic stock market fell 9% in won terms and a whopping 19% in dollar terms, showing disappointing performance even compared to major global stock markets, even leaving the particularly strong US market out of the question.” In the first half of the year, it did not lag behind the global stock market significantly due to the value-up policy and expectations for artificial intelligence (AI) semiconductors, but in the second half, there was internal political uncertainty due to the semiconductor winter theory, Samsung Electronics’ competitiveness issues, and the risk of Donald Trump being elected. “It bulged out and showed a clear contrast between high and low,” he analyzed.

Continued foreign selling in the second half of the year served as a limiting factor in the KOSPI rebound. Foreigners net bought 24.1 trillion won in the stock market from January to July this year, but after switching to net selling in August, they sold a total of 22.8 trillion won by the end of the year. Accordingly, foreigners, who bought 11.3 trillion won in the stock market last year, only made net purchases of 1.3 trillion won this year. Foreigners’ share of KOSPI market capitalization decreased from 32.9% to 32.4% at the end of last year. This year, foreigners sold the most Samsung Electronics. There was a net sale of 10.5197 trillion won. The most purchased items are

Hyundai Motors

It was. Foreigners made a net purchase of 2.7418 trillion won in Hyundai Motors this year. next

SK Hynix

Purchased 1.6862 trillion won. Researcher Lee said, “Foreigners who bought finance and automobiles sold large quantities of Samsung Electronics in particular in the second half of the year, and individual investors also left to look for alternatives such as the U.S. stock market.” “It went down,” he said.

The slump in Daejang stocks led to a slump in the stock market. As Samsung Electronics, a leading stock, performed poorly due to concerns over performance, foreign selling was concentrated and acted as an obstacle to the index. Samsung Electronics fell 32.23% this year. On July 11, when KOSPI recorded a high, Samsung Electronics rose to 88,800 won and recorded a 52-week high. However, it showed weakness after falling behind in the high bandwidth memory (HBM) competition due to poor performance, falling to ‘40,000’ last month. Samsung Electronics ended the year with 53,200 won. Samsung Electronics’ market capitalization decreased by approximately 151 trillion won from 468.6279 trillion won at the end of last year to 317.5924 trillion won. Due to the decline in Samsung Electronics’ market capitalization, this year’s KOSPI market capitalization decreased by 163 trillion won compared to the end of the previous year.

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