Fed's 'Hawkish Stance' Concerns... KOSPI Widens Losses Amid Institutional 'Solo Selling'

KOSPI Market Cap Leaders All Decline Except LG EnSol

On the 7th, when the KOSPI index showed weakness in the early session, dealers were working in the dealing room of Hana Bank in Euljiro, Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Ji Yeon-jin] On the 7th, the domestic stock market, which opened higher, turned lower in the early session and continued its weak trend. Institutional investors led the index decline by net selling about 500 billion KRW within an hour of the opening in the KOSPI market, but individual investors are making every effort to defend by expanding their buying scale.

As of 10:20 a.m., the KOSPI index was trading at 2,728.46, down 21.80 points (0.79%) from the previous trading day. The KOSPI, which started with a slight gain, turned lower within about 2 minutes after the opening and gradually widened its losses. Institutions are net selling about 526.5 billion KRW, pulling the index down. On the other hand, individuals are net buying about 478.9 billion KRW, and foreigners are also buying about 45.3 billion KRW, showing net buying for the third consecutive trading day.

Among the top market capitalization stocks in the KOSPI on the day, except for LG Energy Solution, which showed a strong gain of over 4%, most stocks are recording declines. LG Energy Solution, which was listed last month, soared more than 6% during the session on expectations that passive funds would flow in as it is scheduled to be included in various indices starting this month. However, SK Hynix (-3.61%) and LG Chem (-3.39%) recorded losses of over 3%, and Hyundai Motor, Samsung SDI, and Kia also fell more than 2%. Samsung Electronics dropped 1.76% to 72,700 KRW. Kakao (0.23%) is slightly up.

At the same time, the KOSDAQ index was down 5.78 points (0.64%) at 897.09. The KOSDAQ also fell below the 900 mark in the early session and maintained a weak trend. Individuals are net buying about 271.6 billion KRW, but foreigners and institutions are net selling about 202.1 billion KRW and 57.4 billion KRW, respectively.

In particular, EcoPro BM is sharply down more than 9%, recording a steep decline. EcoPro BM has been on a downtrend since the end of last month when news broke that financial authorities and prosecutors were investigating some executives and employees for insider trading allegations.

Among other top market capitalization stocks, only Wemade (2.91%) is strong, while other game stocks such as Pearl Abyss (-2.15%) and Kakao Games (-1.09%) are declining. Also, bio stocks such as Celltrion Healthcare (-1.55%), HLB (-2.12%), Celltrion Pharm (-0.81%), and Seegene (-0.34%) are weak.

Seo Sang-young, a researcher at Mirae Asset Securities, said, "The US Nasdaq showed strength due to Amazon's sharp rise, but the fact that most sectors except for some stocks declined is a burden on the Korean stock market," adding, "The US January employment report exceeded expectations, and the rapid increase in hourly wages accelerated the pace of the Fed's rate hikes, which is also a burden."

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