KOSPI Falls Below 2600 for First Time in 17 Months... Recovers After Dropping to 2550 Level

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The domestic stock market, which started lower due to the sharp decline in the US stock market, recovered some of the losses during the session but ultimately closed down. The KOSPI briefly regained the 2600 level during the day but ended the session at around 2590. The KOSDAQ also narrowed its losses due to buying by individuals and foreigners but closed lower.

On the 10th, the KOSPI index closed at 2596.56, down 14.25 points (0.55%) from the previous day. This marks the sixth consecutive day of decline. It is the first time since November 30, 2020, that the KOSPI closed below the 2600 level. The KOSPI opened at 2590.13, down 0.79% from the previous trading day, and fell to as low as 2553.64 during the session, dropping to the 2550 level for the first time in 17 months since November 2020. However, individual investors reduced the losses by net buying 284.9 billion KRW. Institutions also net bought 7.5 billion KRW. Foreigners were net sellers with 317.5 billion KRW.

Lee Jae-hyun, a researcher at Hyundai Motor Securities, explained, "The KOSPI's adjustment appears to be due to a combination of negative factors such as inflation and economic slowdown rather than fundamental reasons, which weakened global risk asset preference sentiment. Although concerns about economic slowdown were reflected, Korea was one of the countries that had already experienced a significant correction in the first half of the year, so it seems to have shown a tendency to reduce the extent of the decline to some degree."

Among the top market capitalization stocks, SK Hynix showed the largest gain, rising more than 2%. This was followed by Kia (1.82%), NAVER (0.36%), and Samsung SDI (0.34%). On the other hand, Samsung Electronics, the largest market cap stock, fell 0.61%, showing the largest decline. LG Chem (-0.60%), Kakao (-0.59%), Hyundai Motor (-0.55%), and LG Energy Solution (-0.13%) followed. Samsung Biologics remained flat.

By sector, all sectors except four recorded declines. Telecommunications (1.46%), Food & Beverage (0.73%), Medical Precision (0.49%), and Textiles & Apparel (0.12%) showed gains. Among the sectors that declined, Banking (-1.97%), Insurance (-1.63%), Finance (-1.52%), and Transportation & Warehousing (-1.43%) showed notable weakness.

The KOSDAQ also saw a large intraday drop but later showed a recovery. Opening at 848.08, down 12.76 points (1.48%) from the previous day, the KOSDAQ fell to 831.76 but then rose to 858.40. However, it later declined again, closing at 856.14, down 4.70 points (0.55%) from the previous day. Individuals and foreigners net bought 20.1 billion KRW and 52.2 billion KRW respectively, while institutions net sold 75.7 billion KRW.

Among the top market cap stocks on the KOSDAQ, Cheonbo (2.00%), Pearl Abyss (0.82%), and L&F (0.55%) rose, while Kakao Games remained flat. On the other hand, HLB and Celltrion Pharm fell more than 2%, followed by CJ ENM (-1.99%), Ligno Industry (-1.43%), EcoPro BM (-0.85%), and Celltrion Healthcare (-0.34%).

Seo Sang-young, a researcher at Mirae Asset Securities, explained, "The domestic stock market started lower due to concerns about an economic recession and the sharp decline in the US stock market. However, the intraday losses were reduced after China announced economic stimulus measures to increase new loan volumes and expand the money supply."

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