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Korean Stocks Fall as Cosmetics, Glass Substrates and Pharma Draw Selective Buying

작성자:K jumma 마지막 수정일:

Korea’s October 7 sell-off reached well beyond the largest stocks. The KOSPI fell 1.98%, or 137.49 points, to 6,803.90. The KOSDAQ lost 2.34%, or 21.49 points, to 898.43, giving up the 900 level reclaimed a day earlier. KSI sees a weak market with selective demand for cosmetics, glass substrates and pharmaceutical shares. Within those pockets, the most promising longer-term opportunities depend on orders and production improvements reaching earnings.

Both benchmarks finished close to their session lows: 6,803.81 for the KOSPI and 898.25 for the KOSDAQ. Naver Finance reported 333 ordinary advancers and three limit-up stocks against 527 decliners on the KOSPI. The KOSDAQ had 596 ordinary advancers plus three limit-up issues, compared with 1,060 decliners. Foreign and institutional investors sold net on both markets, while individuals bought net. The combination points to broad selling pressure and limited appetite to sustain intraday rebounds.

ChosunBiz’s closing report highlighted caution ahead of Samsung Electronics’ preliminary earnings release and selling in major companies. For the next session, a reduction in selling pressure and an improvement in participation would make an index rebound more persuasive.

Cosmetics have an export base for earnings growth

Hankook Cosmetics Manufacturing (003350) was among the cosmetics companies attracting buyers. Korea’s trade ministry reported on October 1 that September cosmetics exports rose 31% from a year earlier to a record. The October 7 closing report from ChosunBiz described gains across several beauty-related companies.

More overseas sales can lead to repeat distributor orders and higher factory utilization. Spreading fixed manufacturing costs over more output offers a route from revenue growth to better profits. We favor businesses where sustained orders support that process. Higher promotional spending or input costs could absorb part of the benefit, making margins an important test in the coming results.

JNTC’s opportunity depends on production execution

JNTC (204270) attracted intraday buying after reports of a shorter copper-filling process for through-glass-via substrates. Newsway linked the share-price response to that development. If the improvement can be reproduced reliably in manufacturing, it could raise throughput and reduce unit costs.

Our investment interpretation centers on customer adoption. Consistent quality followed by volume orders could add a new revenue stream. Delayed qualification or production stabilization would postpone the return on money already committed. The next useful evidence is commercial orders and manufacturing economics.

Pharma buying carries a different catalyst

Kukje Pharma (002720) ended the regular session at KRW 4,430. News1 linked buying in pharmaceutical and diagnostic shares to concerns following a Russian laboratory worker’s death. It also reported that Russian authorities had not found evidence supporting the suspected plague infection. A change in Kukje’s largest shareholder was another company-specific development.

The trading theme is sensitive to further news: easing health concerns could quickly weaken demand for the shares. We would look for actual product demand and orders before treating the price response as evidence of lasting earnings growth.

On October 8, our first checks are whether foreign and institutional selling eases and whether more KOSDAQ stocks participate in any recovery. Overseas orders in cosmetics and customer adoption in glass substrates offer concrete business milestones. Progress on those fronts, alongside steadier market breadth, would give selective strength a firmer foundation.

#KoreaStocks #KOSPI #KOSDAQ #Cosmetics #JNTC #KukjePharma

This article is for informational purposes and is not a recommendation to buy or sell securities. Investment decisions and their consequences remain the investor’s responsibility.

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