KOSPI Slips to 2950s Amid Lack of Positive Factors

"Inflation Concerns and Supply Chain Issues Maintain Uncertainty"

[Asia Economy Reporter Minwoo Lee] The KOSPI, which started slightly firm in the 3000 range, has turned to a downward trend and is continuing to decline. The KOSDAQ also fell below the 1000 mark, showing an overall market hesitation. Despite the U.S. stock market hitting record highs day after day, domestic market sentiment has not improved as there is still no upward momentum to resolve negative factors such as inflation concerns and logistics bottlenecks.

As of 11 a.m. on the 5th, the KOSPI stood at 2957.55, down 0.86% from the previous day. After opening slightly firm at 3003.53, it fell below the 3000 level and has been on a downward curve since.

With foreign investors showing little reaction, the uncertainty over recent inflation concerns and supply chain issues remains unresolved, leading to a continued cautious atmosphere.

Park Kwangnam, head of the Digital Research Team at Mirae Asset Securities, said, "There is a decoupling phenomenon from the U.S. stock market, which continues to hit record highs, but we cannot ignore the different industrial structures. For the recent box range to be broken, positive factors must emerge that reverse the downward trend in earnings estimates for the semiconductor sector, which holds the largest weight domestically, while uncertainties such as inflation and logistics supply chain issues are resolved."

In the KOSPI market, foreigners and institutions sold net amounts of 1.8 billion KRW and 289.2 billion KRW respectively, while individuals bought net 281.7 billion KRW.

All sectors except textiles and apparel (3.23%) declined. The steel and metal sector (-3.36%) experienced the largest drop, followed by banking (-3.33%), medical precision (-2.44%), and construction (-2.23%).

The KOSDAQ index showed a similar trend. At the same time, it recorded 998.04, down 0.34% from the previous day, falling below the 1000 mark. It also started slightly firm at 1006.04 but continued to decline.

By investor type, foreigners and institutions sold net 1.3 billion KRW and 1.9 billion KRW respectively, while individuals bought net 29 million KRW.

More sectors declined. Paper and wood (-2.10%), medical precision instruments (-1.44%), construction (-1.17%), and non-metallic minerals (-1.15%) fell, while general electric and electronics (2.67%) and digital content (1.21%) rose.

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