'Money-Eating Hippo' LG EnSol Aftershock Calms... KOSPI Narrows Afternoon Losses

On the 7th, when the KOSPI index showed weakness in the early session, dealers were working in the Hana Bank dealing room in Euljiro, Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Ji Yeon-jin] On the 7th, the domestic stock market is showing weakness due to institutional selling. In the KOSPI market, supply and demand issues surrounding LG Energy Solution led the decline of large-cap stocks. However, the decline has been mitigated as individual investors have net sold over 1 trillion won in both the KOSPI and KOSDAQ markets.

As of 2:03 PM, the KOSPI index is trading at 2,744.20, down 6.06 points (0.22%) from the previous day. The index briefly rose at the start of the day but then turned downward, falling below the 2,720 level during the session, though it has been recovering losses in the afternoon.

Institutions are leading the index decline with net sales worth approximately 821.2 billion won, and foreigners, who were net buyers in the morning, have turned to net selling about 19 billion won in the afternoon. Meanwhile, individuals are net buying about 829.9 billion won, helping to prevent further declines.

Among the top market cap stocks in KOSPI, LG Energy Solution surged nearly 7% (6.94%) amid growing expectations that passive funds will flow in due to various index inclusions this month. In contrast, LG Chem is down 4.57%, and Samsung SDI is also declining by 3.07%. With forecasts that the semiconductor supply shortage will be resolved slowly, Samsung Electronics and SK Hynix have also fallen more than 1%.

Lee Jin-woo, a researcher at Meritz Securities, said, "There was volatility early in the session due to supply and demand issues with LG Energy Solution, but the losses have been narrowing in the afternoon. While LG Energy Solution rose sharply and KOSPI fell slightly, the KOSPI 200 index's decline was greater because other stocks were sold early in the session to buy LG Energy Solution, causing volatility that is now calming down."

At the same time, the KOSDAQ index is down 3.36 points (0.37%) at 899.51. The index fell below 900 shortly after the opening but has been reducing losses during the session and is close to recovering the 900 level. Individuals are net buying about 432.7 billion won, while foreigners and institutions are selling approximately 280.1 billion won and 144.4 billion won, respectively.

In the KOSDAQ market, Wemade rose 4.77%, and Kakao Games also rebounded during the session. Cheonbo climbed 2.69%, entering the top 10. However, EcoPro BM fell more than 7% today; it has been on a downward trend since the end of last month when financial authorities and prosecutors began investigating some executives and employees for insider trading allegations.

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 declined except for some stocks is a burden on the Korean stock market. Additionally, the US January employment report exceeded expectations, and the sharp increase in hourly wages has accelerated the Federal Reserve's rate hike pace, which is also a burden."

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