KOSPI Falls Over 1% to 1850 Amid Oil Price Volatility... KOSDAQ at 620

[Image source=Yonhap News]

[Asia Economy Reporter Koo Eun-mo] The KOSPI fell more than 1% to drop to the 1850 level amid continued financial market instability caused by the decline in international oil prices. The KOSDAQ index is also down more than 1% due to simultaneous selling by institutions and foreigners.

On the 22nd, the KOSPI opened at 1855.51, down 23.87 points (1.27%) from the previous trading day. The KOSPI, which started lower, was pushed down to the 1850 level as institutional and foreign investors sold off in the early session, marking the third consecutive day of decline. As of 9:35 a.m., it was at 1853.14, down 26.24 points (1.40%) from the previous day.

Overnight, major indices on the New York Stock Exchange (NYSE) fell sharply amid concerns over the continued plunge in international oil prices. On the 21st (Eastern Time), the Dow Jones Industrial Average closed at 23,018.88, down 631.56 points (2.67%) from the previous day. The Standard & Poor's (S&P) 500 index plunged 86.60 points (3.07%) to 2,736.56, and the tech-heavy Nasdaq dropped 297.50 points (3.48%) to close at 8,263.23.

Seo Sang-young, a researcher at Kiwoom Securities, said, "The U.S. stock market fell due to the collapse of the oil market and IBM's disappointing earnings report." He added, "Although these issues had already been reflected in the Korean stock market the previous day, the ongoing concerns about deteriorating investor sentiment are negative." He noted, "In particular, the collapse of the oil market continues, with West Texas Intermediate (WTI) June futures plunging more than 40% and Brent crude falling over 25%, dropping below $20. Additionally, the Philadelphia Semiconductor Index fell sharply by 4.73%, with tech stocks leading the decline in the U.S. market, making a correction in the Korean stock market inevitable."

Looking at the current trading trends by participant, institutional and foreign investors are net sellers of 69.6 billion KRW and 33.4 billion KRW respectively, pulling the index down. In contrast, individual investors are net buyers of 100.2 billion KRW.

By sector, transportation equipment, securities, banking, paper & wood, and textiles & apparel are declining. Meanwhile, electric and gas utilities are rising.

Among the top market capitalization stocks, most including Hyundai Motor, Hyundai Mobis, Samsung SDI, POSCO, LG Chem, NAVER, and Samsung Electronics are falling. Samsung Biologics is showing a slight gain.

Currently, in the KOSPI market, 87 stocks are rising without any hitting the upper limit, 783 stocks are falling without any hitting the lower limit, and 28 stocks are unchanged.

The KOSDAQ index is also down more than 1% following the previous day. It opened at 618.95, down 9.82 points (1.56%) from the previous day, and is moving around the 620 level amid simultaneous selling by institutions and foreigners in the early session. As of 9:35 a.m., it stands at 620.67, down 8.10 points (1.29%) from the previous day.

Regarding the current supply and demand situation, similar to the KOSPI, institutional and foreign investors are net sellers of 27.6 billion KRW and 18.3 billion KRW respectively, leading the index decline. Individual investors are net buyers of 48.2 billion KRW.

By sector, other manufacturing, general electric & electronics, semiconductors, machinery equipment, and non-metal sectors are declining, while paper & wood is rising.

Among the top market capitalization stocks, Wonik IPS, EcoPro BM, Studio Dragon, Hugel, Genexine, and SK Materials are falling. Meanwhile, Seegene, which received emergency use authorization from the U.S. Food and Drug Administration (FDA) for its COVID-19 diagnostic reagent, surged more than 10%.

Currently, in the KOSDAQ market, 138 stocks are rising including one hitting the upper limit, 1,127 stocks are falling without any hitting the lower limit, and 25 stocks are unchanged.

This content was produced with the assistance of AI translation services.