KOSPI Starts Below 2700 and KOSDAQ Below 900... Concerns Over Ukraine Conflict and Inflation Rise

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Yoon-joo] Both the KOSPI and KOSDAQ indices started lower. Due to the conflict between Russia and Ukraine and the resulting inflation concerns, the KOSPI briefly dropped to the 2676 level.

As of 10 a.m. on the 7th, the KOSPI was at 2664.16, down 1.82% (49.27 points) from the previous trading day. The KOSPI opened the day at 2680.17, down 1.23% (30.26 points) from the previous day, and the decline widened in the early session.

Despite strong U.S. employment data on the 4th (local time), investor sentiment weakened after it was revealed that Russia shelled Europe’s largest nuclear power plant in Ukraine.

Russia and Ukraine are scheduled for the third round of negotiations on a ceasefire and civilian evacuation on the 7th (local time), but tensions remain high. On the 6th (local time), Russia warned that if Ukraine launches fighter jets from neighboring countries such as Romania, it would be considered as intervening in the war, further escalating concerns and significantly dampening investor sentiment. The U.S. stock market also opened lower and closed down on the 4th (local time) following news that Europe’s largest nuclear power plant in Ukraine was shelled by Russia. Although the February nonfarm payrolls exceeded expectations, marking the highest figure since July last year, inflation concerns due to the war had a greater impact.

[Image source=Yonhap News]

At this time, investor trends show that foreigners and institutions sold 355.7 billion KRW and 405.7 billion KRW respectively, while individuals alone net bought 756.2 billion KRW.

Most of the top market capitalization stocks are also showing declines. Samsung Electronics is trading at 70,100 KRW, down 1.96% from the previous trading day. Other top 10 market cap stocks are all down: SK Hynix (-4.02%), Naver (-2.99%), Samsung Biologics (-1.68%), Kakao (-1.80%), LG Chem (-3.36%), Hyundai Motor (-1.45%), Samsung SDI (-2.65%), Kia (-2.74%), and POSCO (-1.37%).

By sector, insurance (-2.66%), textiles and apparel (-2.56%), finance (-2.42%), food and beverages (-2.32%), securities (-2.28%), chemicals (-2.19%), electrical/electronics (-2.11%), and banking (-2.01%) showed declines in that order.

At the same time, the KOSDAQ index is trading at 887.74, down 1.47% (13.22 points) from the previous day. The KOSDAQ opened at 889.95, down 1.22% (11.01 points) from the previous day.

Looking at investor trends, individuals alone net bought 72.8 billion KRW, while foreigners and institutions net sold 374.7 billion KRW and 417.3 billion KRW respectively.

By sector, IT components showed the largest drop at 2.97%. Almost all sectors declined, including telecommunications equipment (-2.49%), paper/wood (-2.26%), semiconductors (-1.97%), transportation equipment/components (-2.09%), and chemicals (-2.02%). Non-metallic minerals were the only sector rising, up 1.32%.

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