Fear of Ukraine War... KOSPI and KOSDAQ Start with 1% Decline

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] The KOSPI opened down over 1% following news that Russian President Putin has ordered military intervention in Ukraine. Concerns that war could become a reality have significantly dampened investor sentiment toward risk assets.

At 9:16 a.m. on the 22nd, the KOSPI stood at 2700.75, down 1.57% (43.05 points) from the previous trading day. The index opened at 2505.08, down 1.41% (38.72 points) from the previous day. In the domestic market, foreigners and institutions sold stocks worth 132.8 billion KRW and 138.5 billion KRW respectively, while individual investors bought stocks worth 264.8 billion KRW alone.

All of the top market capitalization stocks were in decline. Samsung Electronics traded down 1.62% at 73,000 KRW. Other stocks such as LG Energy Solution (-1.32%), SK Hynix (-1.15%), NAVER (-2.04%), Samsung Biologics (-0.91%), LG Chem (-2.44%), and Kakao (-0.54%) also fell.

At the same time, the KOSDAQ index was at 872.99, down 1.39% (12.26 points) from the previous day. The KOSDAQ opened at 869.08, down 1.72% (15.17 points). In the KOSDAQ market, individual and foreign investors bought stocks worth 4.6 billion KRW and 14.5 billion KRW respectively, while institutions sold stocks worth 19.3 billion KRW alone.

Among the top market capitalization stocks, EcoPro BM and L&F rose by 0.12% and 1.60% respectively, while the rest showed declines. Celltrion Healthcare (-1.42%), Pearl Abyss (-1.15%), Kakao Games (-1.39%), WeMade (-1.99%), and HLB (-1.96%) deepened their losses.

Experts see a low possibility of full-scale war but expect limited rebound potential considering rising interest rates and slowing corporate profits. Sangyoung Seo, a researcher at Mirae Asset Securities, explained, “Given the increased likelihood of armed conflict following the recognition of independence in the Donbas region of eastern Ukraine, risk asset preference is deteriorating and volatility will expand. The uncertainty of interest rate hikes and downward revisions of corporate earnings forecasts also weigh on the KOSPI’s rebound potential.”

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