KOSPI Closes Lower Amid High Inflation and Sharp Rise in US Treasury Yields

Individual Investors Net Buyers Alone... Foreigners and Institutions Net Sellers Neck and Neck

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] The KOSPI closed lower. Although individual investors continued their net buying, it was insufficient to prevent the index from falling.

On the 15th, the KOSPI ended the session at 2,696.06, down 0.76% (20.65 points) from the previous trading day. The index opened at 2,695.52, down 0.78% (21.19 points), showing a sluggish price movement before closing lower. In terms of investor trends, individual investors bought stocks worth 750 billion KRW alone, while foreigners and institutions sold stocks worth 317.9 billion KRW and 444.2 billion KRW, respectively.

On this day, the market was burdened by worsening expectations of inflation peak-out and the sharp rise in U.S. Treasury yields, which led to declines in technology stocks. Lee Kyung-min, a researcher at Daishin Securities, analyzed, "The New York Fed President assessed that it is still uncertain whether the rapid rise in inflation has peaked. Amid the surge in interest rates and the resumption of oil price increases, concerns about prolonged inflation suppressed investor sentiment," adding, "Factors such as tightening that increased market volatility, inflationary pressures, and concerns about economic slowdown have not yet been fully resolved, causing the market to experience unstable fluctuations."

By sector, transportation equipment (1.12%), machinery (1.02%), textiles and apparel (0.82%), and non-metallic minerals (0.64%) showed the largest gains. In the stock market that day, shipbuilding stocks showed strength on expectations of new orders. Daewoo Shipbuilding & Marine Engineering (7%), Korea Shipbuilding & Offshore Engineering (6.2%), and Hyundai Mipo Dockyard (3.2%) closed higher. Among textile and apparel companies, Hyungji Elite (2.6%) and F&F (2.3%) recorded gains. Additionally, Doosan Bobcat and Hyundai Doosan Infracore rose 8.07% and 2.06%, respectively, as expectations grew for benefits from the strong U.S. construction market.

Among the top market capitalization stocks, Samsung Electronics was down 1.33% from the previous day, closing at 66,600 KRW. Influenced by a significant drop in major semiconductor companies in the U.S. stock market the previous day, it hit a new low in three days. SK Hynix also fell 1.82%. Other stocks showing declines included LG Energy Solution (-1.36%), Samsung Biologics (-0.48%), Kakao (-0.73%), NAVER (-1.44%), Samsung SDI (-1.13%), Hyundai Motor (-0.28%), and LG Chem (-1.56%).

The KOSDAQ index closed at 924.44, down 0.38% (3.57 points) from the previous trading day. The KOSDAQ opened at 921.53, down 0.7% (6.48 points), showing a steep decline but narrowed losses toward the end of the session. On this day, individual investors bought stocks worth 176.3 billion KRW alone, while foreigners and institutions sold stocks worth 116.1 billion KRW and 63.4 billion KRW, respectively.

By sector, food and tobacco (3.08%), construction (2.68%), entertainment and culture (2.04%), and broadcasting services (0.86%) showed the largest gains. As tensions between Russia and Ukraine escalated, feed stocks showed strength, with Hanil Feed (30%), Hyundai Feed (18.1%), and Easy Bio (6.1%) posting significant gains.

Most of the top market capitalization stocks in the KOSDAQ market showed declines. EcoPro BM closed at 458,500 KRW, down 0.77% from the previous day. Other stocks that fell included Celltrion Healthcare (-2.6%), L&F (-1.05%), Kakao Games (-1.35%), HLB (-0.16%), Celltrion Pharm (-2.45%), Chunbo (-3.67%), and Wemade (-1.01%). Conversely, Pearl Abyss (2.1%) and CJ ENM (1.24%) rose.

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