KOSPI Falls Over 1%... US CPI Concerns Persist

On the 12th, as the KOSPI index started slightly lower due to selling pressure from foreigners and institutions, dealers were working in the dealing room of Hana Bank in Euljiro, Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Hwang Junho] On the morning of the 12th, the stock market continues to decline due to concerns over the U.S. March Consumer Price Index (CPI) to be announced early the next day and the sharp rise in government bond yields.

As of 11:21 a.m. on the 12th, the KOSPI recorded 2,664.83, down 28.27 points (1.05%). The decline has deepened compared to the early session. Individual investors, who turned from net sellers to net buyers in the early session, purchased stocks worth 207.1 billion KRW, helping to stem the market decline. However, foreign investors and institutions continued net selling with 129.6 billion KRW and 83.8 billion KRW respectively, maintaining the downward trend in the market.

Among all listed stocks, 727 stocks declined. All of the top market capitalization stocks are in the red. The unwavering market leader Samsung Electronics fell 0.74% to 67,400 KRW, and LG Energy Solution also dropped 3.41%. By sector, medical precision equipment (1.23%), transportation and warehousing (0.29%), and non-metallic minerals (0.28%) were recorded.

At the same time, the KOSDAQ also fell 1.37% to 909.22. Although individual investors bought stocks worth 95.2 billion KRW, foreign investors and institutions sold stocks worth 7.5 billion KRW and 83.3 billion KRW respectively, causing a significant decline in the market.

Among all stocks, 1,208 stocks declined. Except for Pearl Abyss (0.57%), all of the top market capitalization stocks recorded declines. Notably, the decline of major game stocks such as Wemade (-9.27%) and Kakao Games (-6.74%) stood out.

The market on this day is analyzed to have recorded a decline due to the contraction of investor sentiment amid concerns over the U.S. CPI.

The domestic stock team at Shinhan Financial Investment stated, "The KOSPI fell below 2,670 due to the impact of the sharp rise in U.S. Treasury yields and concerns over economic slowdown caused by the prolonged lockdown in Shanghai, China," adding, "With growing caution ahead of the U.S. CPI announcement, foreign investors have been net sellers for 13 consecutive trading days."

Seosangyoung, a researcher at Mirae Asset Securities, said, "The decline in the Japanese stock market continues due to the rise in Japan's Producer Price Index and the sustained sharp rise in the U.S. 10-year Treasury yield. Additionally, news related to Russia's use of chemical weapons has caused weakness in the U.S. after-hours futures market, which is a burden on the Korean stock market," and forecasted, "This afternoon's market is expected to continue a stock-specific trend while paying attention to whether the Chinese stock market rebounds and the trend of U.S. after-hours futures."

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