KOSPI Closes Down 1% Amid Worsening Ukraine Crisis... KOSDAQ Barely Holds 900 Level

Fed Signals Aggressive Tightening if Inflation Worsens
Ukraine Crisis Escalates
KOSPI and KOSDAQ Close Down Over 1%
Individuals Buy... Foreigners and Institutions Sell

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The KOSPI index closed down over 1% due to the worsening situation in Ukraine. The KOSDAQ index briefly fell below the 900 mark during the session but ended slightly higher, closing above 900.

According to the Korea Exchange on the 4th, the KOSPI closed at 2,713.43, down 1.22% (33.65 points) from the previous session. The KOSPI opened at 2,736.58, down 0.38% (10.50 points) from the previous trading day, and the decline widened throughout the day.

By investor type, foreigners sold a net 588.7 billion KRW, and institutions sold a net 425.9 billion KRW. Meanwhile, individuals bought a net 990.3 billion KRW, helping to defend against further declines in the index.

Jerome Powell, Chairman of the Federal Reserve (Fed), raised concerns in the market with his stronger remarks on inflation. Powell has indicated that aggressive tightening policies could be implemented if inflation worsens.

Additionally, investor sentiment weakened following news that the Zaporizhzhia Nuclear Power Plant in Ukraine caught fire due to a Russian attack. Ukrainian authorities reported on the 4th (local time) that a fire broke out at the Zaporizhzhia nuclear power plant complex due to shelling by Russian forces. The fire has since been extinguished, and there have been no changes in radiation levels in the surrounding area.

Lee Kyung-min, a researcher at Daishin Securities, explained, "The Fed's unchanged stance on interest rate hikes negatively affected investor sentiment, and the news of the fire at the Ukrainian nuclear power plant added further volatility to the stock market."

[Image source=Yonhap News]

Among the top 10 companies by market capitalization, all stocks fell: Samsung Electronics (-1.92%), LG Energy Solution (-1.95%), SK Hynix (-3.49%), Naver (-2.46%), Samsung Biologics (-1.52%), Kakao (-1.97%), LG Chem (-4.12%), Hyundai Motor (-2.82%), Samsung SDI (-4.17%), and Kia (-0.95%).

By sector, textiles and apparel (-1.32%), chemicals (-1.42%), pharmaceuticals (-1.30%), and electrical and electronics (-2.27%) declined, while steel and metals (1.37%), medical precision (0.77%), electric and gas utilities (0.86%), construction (0.68%), transportation and warehousing (4.30%), and telecommunications (2.10%) rose.

The KOSDAQ index closed at 900.96, down 1.25% (11.36 points) from the previous session. The index opened at 908.47, down 0.42% (3.85 points) from the previous trading day, continued to decline, briefly falling below 900 during the session, but narrowed losses before the close to finish above 900.

By investor type, individuals again led net buying, purchasing a net 392.1 billion KRW, while foreigners and institutions sold a net 228.3 billion KRW and 160.7 billion KRW, respectively.

Among the top 10 companies by market capitalization on the KOSDAQ, all stocks declined: Celltrion Healthcare (-2.96%), EcoPro BM (-1.45%), L&F (-2.94%), Pearl Abyss (-3.05%), Kakao Games (-3.97%), and Wemade (-5.89%).

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