|

KOSPI Drops 3.65% as Plant Plans, a Tender Offer and Earnings Attract Selective Buying

작성자:K jumma 마지막 수정일:

South Korea’s October 12 selloff left buyers concentrated in a few company-specific opportunities: a regional chip-plant project, a priced tender offer and improving pharmaceutical earnings. The KOSPI closed at 6,384.24, down 3.65%, while the KOSDAQ fell 4.83% to 849.19. KSI’s view is that these isolated gains need broader participation and easing selling pressure on October 13 before they can support a durable market recovery.

The KOSPI lost 241.69 points and finished well below its 6,578.17 opening level, close to the session low of 6,368.49. The KOSDAQ shed 43.08 points. The weakness extended beyond the largest index constituents: Naver’s daily tally showed 167 advancing versus 720 declining KOSPI names, and 228 versus 1,466 on KOSDAQ, including limit moves.

Foreign and institutional investors were net sellers on the main board, with individuals buying. Newspim linked pressure on semiconductor shares to concerns about US AI growth and elevated long-term interest rates. In our assessment, earnings growth needs support from renewed demand for equities: a higher required return and persistent selling can outweigh stronger corporate results.

Plant investment expectations reach a local materials supplier

Seosan (079650) ended the regular session at KRW 6,760. ChosunBiz reported that SK chairman Chey Tae-won’s October 9 visit to the proposed Gwangju chip-cluster site encouraged buying in regional names. Seosan supplies ready-mixed concrete, making construction demand the potential link between the project and its business.

We see an opportunity if site preparation progresses into construction and procurement. The relevant milestones are orders and delivery schedules; the report does not establish a supply contract for Seosan. Delayed groundworks would push back the revenue opportunity even if the long-term investment ambition remains intact.

A tender offer gives Hanwha M&S a price reference

Hanwha Machinery & Services Holdings (0220W0) closed at KRW 7,630. Reports citing the filing say Kim Dong-seon plans to buy up to 16.06 million common shares at KRW 8,000 each between October 12 and November 2, using personal funds.

A defined price and timetable can attract demand during a falling market. Acceptance is subject to the offer’s volume and allocation terms, however, so the difference from the offer price is not an assured return. Costs and taxes also matter. Beyond the transaction, our focus turns to whether ownership changes lead to capital allocation that improves shareholder value.

Celltrion shows operating leverage

Celltrion (068270) finished at KRW 180,000, above the preceding regular-session close of KRW 179,000. Its preliminary third-quarter revenue was KRW 1.5 trillion and operating profit KRW 510 billion, up 45.8% and 69.2% respectively from a year earlier. The company reported a 34% operating margin and attributed improvement to a richer product mix and lower costs.

We see scope for further earnings growth if newer products scale through the existing sales network and manufacturing efficiency improves. Preliminary figures remain subject to finalization, while price competition could slow margin gains. Fourth-quarter sales composition will help show whether the improvement can persist.

For the next session, rising participation would matter alongside any index rebound. Construction orders, tender-offer execution and product sales provide different tests for today’s resilient names. Our preference is to follow the businesses whose evidence strengthens as market-wide selling pressure eases.

#KOSPI #KOSDAQ #KoreaStocks #Seosan #HanwhaMS #Celltrion

This article is for informational purposes only and is not investment advice. Investors are responsible for their own decisions and any resulting gains or losses.

Key Data Sources

Read next

KOSPI Falls 2.62% as Equipment Flows, Buybacks and Delisting Relief Drive Selective Gains →Korean Stocks Fall as Cosmetics, Glass Substrates and Pharma Draw Selective Buying →

관련 글 보기