Despite US Stock Gains, KOSPI Closes Down 1.8%, Barely Holding 2900 Level

Morning Bond and Forex Market Volatility Expands
Trading Volume Decreases, Supply-Demand Volatility Increases
KOSDAQ Index Closes Down 3.46%

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] The KOSPI and KOSDAQ indices closed lower despite the rise in the U.S. stock market. Concerns over prolonged inflation-driven tightening and global supply chain disruptions, among other domestic and international negative factors, have significantly dampened investor sentiment toward risk assets.

On the 6th, the KOSPI closed at 2,908.31, down 1.82% (53.86 points) from the previous trading day. The index opened at 2,986.06, up 0.81% (23.89 points) influenced by the rise in the U.S. stock market, and showed an early intraday gain approaching 1%, but the decline widened in the afternoon session.

Looking at investor trends, individual and institutional investors bought stocks worth 177 billion KRW and 84 billion KRW respectively, while foreign investors sold stocks worth 278.7 billion KRW alone. Although the net selling by foreign investors was limited, the decrease in trading volume due to psychological contraction meant that even small changes in supply and demand had a significant impact on the stock market.

The market reversed to a decline and widened losses as volatility in the bond and foreign exchange markets sharply increased. Lee Kyung-min, a researcher at Daishin Securities, explained, “Volatility in the financial markets expanded after 10 a.m. today. Domestic bond yields rose influenced by the increase in U.S. bond yields and the strengthening of the dollar, and the won-dollar exchange rate exceeded 1,190 KRW. It is difficult to pinpoint the exact cause of the sudden changes in the bond and foreign exchange markets, but it is understood that the New Zealand central bank’s interest rate hike psychologically burdened the bond and foreign exchange markets.”

Among the top market capitalization stocks, Samsung Electronics (-1.25%), SK Hynix (-1.43%), LG Chem (-0.54%), Samsung Biologics (-2.59%), and Samsung SDI (-2.06%) declined, while NAVER (0.67%), Kakao (1.80%), and Hyundai Motor (0.26%) rose.

The KOSDAQ index closed at 922.36, down 3.46% (33.01 points) from the previous trading day. The index started the day at 962.62, up 0.76% (7.25 points), showing an intraday gain exceeding 1%, but reversed to a sharp decline.

Regarding investor trends, individual and foreign investors sold stocks worth 90.4 billion KRW and 49.8 billion KRW respectively, while institutions alone bought stocks worth 134.9 billion KRW. Among the top market capitalization stocks, Celltrion Healthcare (-4.54%), EcoPro BM (-6.15%), L&F (-8.96%), Pearl Abyss (-0.58%), and HLB (-4.86%) declined, while CJ ENM (5.47%) rose.

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