Uncertainty Rises Ahead of FOMC... KOSPI Closes Below 3000

KOSDAQ Holds Above 1000 Level

On the afternoon of the 14th, an employee is working in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul.
[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The KOSPI fell below the 3,000 mark again on a closing basis after a week. As uncertainty increased ahead of the U.S. Federal Open Market Committee (FOMC) meeting scheduled for the 15th (local time), investor sentiment appeared to cool somewhat.

On the 14th, the KOSPI closed at 2,987.95, down 0.46% (13.71 points) from the previous day. After opening lower at 2,983.95, it narrowed the decline and briefly surpassed the 3,000 mark in the morning but soon turned downward again.

The previous day, concerns over the new COVID-19 variant 'Omicron' resurged globally, causing all three major U.S. stock indices to plunge sharply, coupled with FOMC caution. Seokhwan Kim, a researcher at Mirae Asset Securities, explained, "The simultaneous selling by foreigners and institutions ahead of the FOMC influenced the index decline. Also, the selling pressure on recently popular U.S. stocks such as electric vehicles, metaverse (extended virtual world), and non-fungible tokens (NFTs) added to the burden on the domestic market, leading to a decline in domestic secondary battery-related stocks."

In fact, by investor type, foreigners and institutions sold net amounts of 358.8 billion KRW and 199.1 billion KRW, respectively. Only individuals bought net 513.3 billion KRW.

Many sectors declined. The largest drops were in chemicals (-1.55%), finance (-1.19%), paper & wood (-1.04%), and machinery (-0.85%). Food & beverages (1.78%) and pharmaceuticals (1.75%) rose.

Among the top 10 market capitalization stocks, more stocks fell than rose. LG Chem showed the largest drop at -5.01%, followed by Samsung SDI (-3.27%), Kakao (-1.35%), Kia (-0.81%), KakaoBank (-0.63%), and SK Hynix (-0.41%). Samsung Biologics (2.06%), Hyundai Motor (0.96%), NAVER (0.38%), and Samsung Electronics (0.26%) increased.

The KOSDAQ also closed down 0.31% (3.15 points) at 1,002.81 compared to the previous day. It started slightly lower at 1,001.11 but reversed to an upward trend in the morning, reaching as high as 1,007.41 around 10:37 a.m. It then turned downward again, dropping into the 990s, but recovered near the end of trading to hold above 1,000.

In the KOSDAQ market, foreigners alone bought a net 42.9 billion KRW. Individuals and institutions sold net amounts of 22.8 billion KRW and 7.8 billion KRW, respectively.

Most sectors also declined. The largest drops were in IT components (-1.42%), construction (-1.38%), internet (-1.38%), textiles & apparel (-1.23%), and telecommunications equipment (-1.21%). Other services (1.87%), technology growth companies (1.61%), and pharmaceuticals (0.72%) rose.

Among the top 10 market capitalization stocks, most fell. Pearl Abyss had the largest drop at -3.16%, followed by L&F (-1.77%), Kakao Games (-1.33%), EcoPro BM (-0.86%), and HLB (-0.43%). Alteogen (1.56%), Wemade (1.47%), Celltrion Pharm (0.82%), and Celltrion Healthcare (0.37%) rose.

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