The Drop Narrowed to 1%... KOSPI Still in the 3000s

KOSDAQ Slightly Rebounds but Still Declines by Over 1%

On the morning of the 28th, the KOSPI index is displayed on the electronic board in the dealing room of Hana Bank headquarters in Jung-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The KOSPI, which plunged about 2% in early trading, narrowed its losses to the 1% range. Nevertheless, it remains below the 3000 level. Analysts suggest that the possibility of tightening measures from China highlighted profit-taking sales in the U.S. stock market, and the ripple effects spread to the domestic stock market.

On the 28th, the KOSPI opened at 3114.98, down 0.24% (7.58 points) from the previous day. It began to plunge immediately after the opening. Around 9:31 a.m., it dropped to 3046.97, down 2.42% from the previous day. Afterwards, it slightly recovered, rising to 3079.85 by 9:51 a.m.

Foreigners and institutions showed notable selling pressure. They net sold 389.7 billion KRW and 204 billion KRW, respectively. Meanwhile, individuals net bought 602.8 billion KRW.

Most of the top 10 market capitalization stocks declined. SK Hynix had the largest drop at 3.1%. It was followed by Samsung SDI (-2.4%), Samsung Biologics (-2.1%), Kakao (-1.9%), and Samsung Electronics (-1.7%). NAVER (1.4%), Celltrion (0.3%), and LG Chem (0.2%) rose.

The KOSDAQ also showed a trend of narrowing losses. It opened at 980.70, down 0.53% (5.22 points) from the previous day, and immediately after the opening fell to 960.16, down 2.61% from the previous day. Afterwards, it recovered losses and rebounded to 975.44 by 9:51 a.m.

In the KOSDAQ market, individuals and foreigners showed net buying. They purchased 51.5 billion KRW and 34.9 billion KRW, respectively. On the other hand, institutions net sold 66.9 billion KRW.

Some of the top 10 market capitalization stocks, which were all declining in early trading, switched to an upward trend. Pearl Abyss had the largest increase at 4.7%. It was followed by Seegene (0.5%), HL Biopharma (0.2%), and Celltrion Pharm (0.1%). Meanwhile, Ecopro BM (-2.6%), Alteogen (-2.3%), CJ ENM (-2.2%), and Kakao Games (-2.1%) remained in a downward trend.

Sangyoung Seo, a researcher at Kiwoom Securities, said, "The global stock market, which had been rising due to liquidity, showed a tendency for profit-taking sales as the possibility of tightening from China was highlighted. The fact that major companies such as Apple, Tesla, and Facebook, which announced earnings after the U.S. market closed, are declining is also a burden," adding, "The domestic stock market is expected to continue the process of absorbing selling pressure after starting lower."

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