KOSDAQ Turns to Downtrend... Investor Sentiment Drops Amid Planned US Tariff Increase on Russian Imports

KOSPI Falls to 2649 Intraday... Maintains Over 1% Decline

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Yoon-joo] The KOSPI index is barely holding the 2650 level on the afternoon of the 11th. It started lower due to inflation concerns after the U.S. February inflation data came in higher than expected the previous day, and investor sentiment weakened in the afternoon as the U.S. announced it would end normal trade relations with Russia. The KOSDAQ index, which showed gains in the morning after a decline at the start, also turned downward.

As of 1:16 PM, the KOSPI stands at 2649.84, down 30.67 points (-1.14%) from the previous trading day. The KOSPI opened at 2665.95, down 14.37 points (-0.54%) from the previous day, and then widened its losses.

Looking at investor trends, foreigners and institutions are selling 540.9 billion KRW and 399.2 billion KRW respectively, suppressing gains. Meanwhile, individual investors are the only ones net buying with 923 billion KRW.

Among the top 10 market capitalization stocks, only Kakao (+1.50%) is maintaining a steady upward trend. Battery stocks LG Energy Solution and Samsung SDI are down -6.35% and -5.17%, respectively. LG Chem, which is being removed from the KOSPI 200 due to rebalancing, is also down -4.93%. Samsung Electronics is trading at 69,900 KRW, down -1.83%, with a slightly larger drop. Naver (-0.61%), Samsung Biologics (-1.13%), Hyundai Motor (-0.30%), and Kia (-0.99%) are also declining.

By sector, the electrical electronics sector is the worst performer in the afternoon with a -2.66% drop. Manufacturing (-1.79%), chemicals (-1.77%), securities (-1.30%), and steel & metals (-0.67%) are also falling.

On the 8th, KOSPI started trading at 2,617.33, down 33.98 points (1.28%) from the previous trading day. Dealers are 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 Kang Jin-hyung aymsdream@

As of 1:39 PM, the KOSDAQ index is at 889.01, down 0.07 points (-0.01%). The KOSDAQ opened at 888.57, down 0.51 points (-0.06%), but turned upward in the morning due to buying by individuals and institutions. However, it turned downward again in the afternoon and is now showing a tug-of-war pattern with index reversals.

In the KOSDAQ, foreigners are the only ones net selling in the afternoon with 58.3 billion KRW. Individuals, who were selling in the morning, are now buying 34.9 billion KRW along with institutions buying 32.6 billion KRW. Additionally, financial investment (+13.8 billion KRW), insurance (+3.4 billion KRW), investment trusts (+6.4 billion KRW), banks (+0.3 billion KRW), other financials (+1.8 billion KRW), and pension funds (+5.4 billion KRW) are also participating in buying.

Among the top market cap stocks, Rino Industrial has risen 2.79%, securing a spot in the top 10 since the morning. Celltrion Healthcare (+1.97%), Kakao Games (+0.13%), and Celltrion Pharm (+0.32%) are also rising. On the other hand, EcoPro BM (-4.81%), Pearl Abyss (-4.59%), L&F (-3.20%), HLB (-1.80%), and Chunbo (-1.19%) are falling. Seegene was ranked 10th in market cap the previous day but dropped to 11th early in the session and further widened its losses to -5.07% in the afternoon, falling to 13th in market cap.

[Image source=Yonhap News]

The increased volatility in the afternoon market is attributed to heightened inflation concerns amid strengthened U.S. sanctions on Russia. According to Reuters, U.S. President Joe Biden is expected to announce on the 11th (local time) plans to impose high tariffs on Russian imports. It is also reported that he will declare the effective 'end' of 'normal' trade relations with Russia. Reuters also reports that the U.S. Congress appears to support the Biden administration's attempts at 'export controls' against Russia.

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