KOSPI and KOSDAQ Weaken Early Session Amid US Stock Market Plunge

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] The domestic stock market is showing weakness in the early session due to the plunge in the U.S. stock market.

On the 4th, the KOSPI opened at 2,332.68, down 63.22 points (2.64%) from the previous trading day. The KOSPI, which started lower, retreated to the 2,350 level with a decline of around 2% in the early session. As of 9:21 a.m., it was trading at 2,348.95, down 46.95 points (1.96%) from the previous day.

Overnight, major indices on the New York Stock Exchange (NYSE) plunged due to a sharp drop in key tech stocks including Apple. On the 3rd (local time), the Dow Jones Industrial Average closed at 28,292.73, down 807.77 points (2.78%) from the previous day. The Standard & Poor's (S&P) 500 index fell 125.78 points (3.51%) to 3,455.06, and the tech-heavy Nasdaq index plunged 598.34 points (4.96%) to 11,458.10.

Sangyoung Seo, a researcher at Kiwoom Securities, said, "The U.S. stock market plunged as stocks that had led the recent rally were rapidly sold off. This could increase profit-taking desires for stocks that had large gains in the Korean market, which will likely dampen investor sentiment." He added, "Considering the large gap between the stock market and other financial markets as well as economic indicators, increased volatility in the stock market is inevitable going forward."

Looking at trading trends by participant, institutional investors are net sellers with 172.5 billion KRW, pulling the index down. Meanwhile, individual and foreign investors are net buyers with 198.5 billion KRW and 2.5 billion KRW respectively.

Most sectors are declining. Securities, machinery, insurance, and non-metallic minerals sectors are experiencing relatively large drops.

Among the top market capitalization stocks, all from Samsung Electronics at 1st place to Kia Motors at 15th are down. Netmarble at 16th is slightly up.

The KOSDAQ index is also retreating quickly, falling more than 2% in the early session. It opened at 841.37, down 32.76 points (3.75%) from the previous day, and fell to the 850 level due to net selling by individuals and institutions. As of 9:21 a.m., it was at 853.61, down 20.52 points (2.35%) from the previous day.

Currently, individual and institutional investors are leading the decline with net sales of 51.2 billion KRW and 17.8 billion KRW respectively. Foreign investors are net buyers with 73.7 billion KRW.

By sector, semiconductors, non-metallic minerals, and IT components are down, while broadcasting and reproduction media and digital content sectors are slightly up.

Most of the top market capitalization stocks in the KOSDAQ market are also down. Alteogen, SK Materials, HL Biopharma, KMW, and Genexine are down, while Pearl Abyss and MedPacto are up.

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