KOSPI Closes Down Over 1% Amid 'Stagflation Concerns'

Foreigners and Institutions Net Sell, Individuals Solely Net Buy

On the 8th, KOSPI opened at 2,617.33, down 33.98 points (1.28%) from the previous trading day, as dealers were working in the Hana Bank dealing room in Jung-gu, Seoul. On the same day, the won-dollar exchange rate surpassed 1,230 won intraday for the first time in 1 year and 9 months. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Minji Lee] As concerns over stagflation caused the U.S. stock market to plunge sharply, the domestic stock market also closed lower under its influence.

On the 9th, the KOSPI closed at 2,622.40, down 1.09% (28.91 points) from the previous trading day. The index initially fell by more than 1.7% compared to the previous day, dropping to the 2,600 level, but then narrowed the decline. In the stock market that day, individual investors alone purchased stocks worth 714 billion KRW. Foreigners and institutions sold stocks worth 472.7 billion KRW and 292.4 billion KRW, respectively.

With inflation at a severe level and the prospect that Western energy countries might impose energy sanctions on Russia, which invaded Ukraine, fears of stagflation?where economic slowdown and rapid price increases occur simultaneously?were reflected in the stock market.

Lee Kyung-min, a researcher at Daishin Securities, said, “As the U.S. stock market fell due to expanded concerns over global stagflation caused by the sharp rise in commodity prices, large-cap stocks with high market capitalization in the domestic market also showed a downward trend. On that day, the won-dollar exchange rate rose to the 1,230 won level as the dollar index surpassed 99 points.”

By sector, pharmaceuticals (1.17%), banks (0.88%), and medical precision instruments (0.71%) showed upward trends. On that day, Shinpung Pharmaceutical surged 22.21% on news of the Phase 3 clinical trial of its oral COVID-19 treatment. Among the top market capitalization stocks, Samsung Electronics traded down 0.88% at 69,500 KRW. LG Energy Solution (-0.85%), SK Hynix (-1.26%), NAVER (-0.81%), LG Chem (-2.14%), and Samsung SDI (-2.74%) declined, while Samsung Biologics (0.65%) and Kakao (0.55%) rose.

The KOSDAQ index closed at 870.14, down 1.29% (11.40 points) from the previous trading day. The KOSDAQ index opened at 869.05, down 1.42% (12.49 points) from the previous day, and during the session showed a decline of over 1.8%, but narrowed the loss later. On that day, foreigners and institutions sold stocks worth 72.5 billion KRW and 20.4 billion KRW, respectively, while individuals purchased stocks worth 91.7 billion KRW alone.

Among the top market capitalization stocks, Celltrion Healthcare (1.55%), Pearl Abyss (2.88%), Kakao Games (1.28%), Wemade (1.60%), Celltrion Pharm (1.65%), and Seegene (1.71%) rose, while EcoPro BM (-8.68%), L&F (-6.55%), and HLB (-0.34%) declined.

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