KOSPI and KOSDAQ Fall Over 2%... Dispute Inflation Phobia

Stock Market Drops Over 2% on the Morning of the 14th
Impact of Russia-Ukraine Conflict
Growing Concerns Over Intensified Inflationary Pressure

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Junho] On the morning of the 14th, the stock market showed a decline of over 2% in both the KOSPI and KOSDAQ. Amid the ongoing conflict between Russia and Ukraine, concerns about the economy have swept over the stock market, increasing the scale of the index decline.

As of 10:59 a.m., the KOSPI stood at 2,691.54, down 2.04% from the previous session. While institutions are net buying about 153.1 billion KRW, individuals and foreigners are net selling about 42.3 billion KRW and 125.2 billion KRW, respectively. At this time, the USD/KRW exchange rate is at 1,199.80, up 0.11%, indicating continued dollar strength, yet foreign net selling is increasing. Accordingly, the KOSPI has retreated below the 2,700 level for the first time in eight trading days, continuing a tough tug-of-war.

Among all stocks, only 75 showed gains. Among the top market capitalization stocks, Samsung Biologics rose 1.33%, while the others remained in decline. Samsung Electronics traded down 2.27% at 73,200 KRW. LG Energy Solution also fell 3.11%, and NAVER (2.60%) and Kakao (4.03%) are also plunging.

By sector, the machinery sector, including Doosan Heavy Industries & Construction (8.83%), dropped 3.86%, while construction, transportation equipment, non-metallic minerals, services, and paper/wood sectors recorded declines in the 2% range.

The KOSDAQ also fell 2.68% to 853.89. While individuals realized profits worth 31.5 billion KRW, foreigners and institutions supported the index with net purchases of 20 billion KRW and 13.7 billion KRW, respectively. Among all KOSDAQ stocks, only 85 rose. Among the top market cap stocks, pharmaceutical stocks such as Celltrion Healthcare (0.16%) and Celltrion Pharm (0.12%) showed gains, and gaming stocks like Pearl Abyss (0.64%) and Wemade (1.46%) also continued to rise.

The market is analyzed to be under downward pressure due to the impact of the Russia-Ukraine conflict. However, it appears that the direct downward pressure is caused more by the increased inflationary pressure resulting from the war rather than the war itself.

Kim Daejun, a researcher at Korea Investment & Securities, said, "Inflation caused by the war and the central bank's tightening measures are greater burdens in the current situation," adding, "Since concerns about these variables still remain, the market needs to respond defensively."

Ahn Youngjin, a researcher at SK Securities, said, "We expect oil prices to rise further and the exchange rate to fall further," explaining, "Regarding oil prices, various geopolitical issues including the Ukraine situation are ongoing, and OPEC+ is not very cooperative with production increase plans, so international oil prices are expected to maintain strength even after rising to $90."

Besides the domestic market, Asian markets are also showing weakness. As of this time, Japan's Nikkei index is down 2.54% at 26,992, and China's Shanghai Composite index is down 0.72% at 3,437.

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