Foreigners and Institutions Rush to Sell... KOSPI and KOSDAQ Down 1%

"Weak Outlook Until US-Russia Foreign Ministers Meeting on the 24th"

As geopolitical tensions surrounding Ukraine escalate, the KOSPI index fell more than 1% in early trading on the 22nd. Dealers are working in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Minji Lee] The KOSPI and KOSDAQ indices continue to show weakness. Concerns that the war between Ukraine and Russia may become a reality are reflected in the indices.

As of 10:58 a.m. on the 22nd, the KOSPI stood at 2,703.27, down 1.46% (40.103 points) from the previous trading day. The KOSPI opened at 2,505.08, down 1.41% (38.72 points) from the previous day, and the decline widened throughout the session. According to current investment trends, foreigners and institutions sold stocks worth 288.4 billion KRW and 244.2 billion KRW respectively, while individuals alone purchased stocks worth 512.6 billion KRW.

The index, which had ended flat the previous day amid speculation of a US-Russia summit, has widened its losses in just one day. The fear of war has intensified following news that Russian President Putin ordered military entry into Ukraine. As investment sentiment toward risky assets shrinks, Bitcoin is also trading at $36,971.69, down 5.18% from the previous day.

Securities experts say the possibility of a full-scale war is low, but since it is difficult to determine the market direction, a conservative approach is necessary. Na Jeong-hwan, a researcher at Cape Investment & Securities, said, “Although the possibility of armed conflict between Ukrainian and Russian forces is increasing, the US-Russia foreign ministers’ meeting scheduled for the 24th is expected to proceed. The domestic stock market will show weakness for the time being, but it is expected to move according to related news in the future.”

By sector, only the transportation and warehousing sector showed an increase of 1%. Shipping stocks rose strongly amid forecasts that the logistics crisis could be prolonged, with Pan Ocean up 4.9%, HMM up 4.8%, and Korea Line up 4.7%. This was followed by securities (-0.27%), electric and gas utilities (-0.2%), pharmaceuticals (-0.33%), and telecommunications (-0.72%).

Most of the top market capitalization stocks were down. Samsung Electronics fell 1.62% to 73,000 KRW, and LG Energy Solution dropped 1.88% to 444,500 KRW. Other declines included SK Hynix (-1.54%), NAVER (-2.36%), LG Chem (-3.25%), Kakao (-1.07%), Hyundai Motor (-2.16%), and Samsung SDI (-1.81%).

At the same time, the KOSDAQ index stood at 870.51, down 1.55% (13.74 points) from the previous trading day. The KOSDAQ opened at 869.08, down 1.72% (15.17 points) from the previous day. Looking at investor trends, individuals alone bought stocks worth 75.7 billion KRW, while foreigners and institutions sold stocks worth 55.8 billion KRW and 19.9 billion KRW respectively.

By sector, food and tobacco rose 0.24%, while IT components (-0.09%), broadcasting services (-0.19%), and telecommunications & broadcasting services (-0.35%) declined. Among the top market capitalization stocks, EcoPro BM and L&F rose 1.25% and 2.62% respectively, and Cheonbo increased 1.20%, while the rest showed declines. Celltrion Healthcare (-1.10%), Pearl Abyss (-1.88%), Kakao Games (-1.81%), Wemade (-3.22%), and HLB (-3.76%) all fell.

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