KOSPI Retreats to 1915 Amid Recession Concerns... Intraday Decline Over 1%

[Asia Economy Reporter Oh Ju-yeon] Remarks by Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), suggesting a delayed pace of economic recovery are also impacting the domestic stock market. Following the simultaneous decline of the U.S. and European stock markets on the 13th (local time) due to concerns over a prolonged recession, the KOSPI showed weakness on the 14th, falling over 1% during intraday trading.

As of 9:40 a.m. that day, the KOSPI stood at 1921.95, down 0.95% from the previous trading day. During the morning session, it dropped to 1915.96, showing a decline rate of 1.26%.

Among the top market capitalization stocks, Samsung Electronics (-1.54%), SK Hynix (-2.39%), Samsung Biologics (-0.32%), LG Chem (-1.28%), LG Household & Health Care (-0.07%), Samsung SDI (-0.48%), and Hyundai Motor (-0.86%) all declined.

The market weakness on this day is interpreted as a reaction by market participants to the uncertainty surrounding economic recovery. In a virtual speech at the Peterson Institute for International Economics (PIIE), a think tank, Fed Chairman Powell mentioned facing the most severe recession since World War II and raised the possibility of a prolonged recession.

In the domestic securities market, it is anticipated that these remarks could also affect the Korean stock market, with foreign investors likely to continue selling. At this time, foreign investors sold stocks worth 101.7 billion KRW in the KOSPI market, and institutions also net sold stocks worth 98.7 billion KRW. Individual investors net bought stocks worth 199.6 billion KRW.

The KOSDAQ index also fell 0.08% from the previous trading day to 691.01. Foreign and institutional investors sold stocks worth 17.6 billion KRW and 17.5 billion KRW respectively, while individual investors net bought stocks worth 44.5 billion KRW.

Among the top market capitalization stocks, Celltrion Healthcare (-0.54%), Celltrion Pharm (-1.88%), and Pearl Abyss (-4.20%) declined, but HLB (0.19%) and Seegene (7.47%) rose.

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