KOSPI Falls for 7 Consecutive Trading Days Ahead of US April CPI Release... Foreigners and Institutions 'Sell Off'

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Ahead of the release of the US Consumer Price Index (CPI) for April, the KOSPI closed slightly lower. Foreigners and institutions showed selling pressure, but individual investors absorbed it and defended the index.

On the 11th, the KOSPI index closed at 2,592.27, down 4.29 points (0.17%) from the previous day. The KOSPI closed lower for the seventh consecutive trading day, marking the first time since August 5-17 last year, when it fell for eight consecutive trading days. The previous day, it closed below the 2,600 level for the first time in 17 months.

Starting the day at 2,586.52, down 10.04 points (0.39%) from the previous day, the KOSPI fell to 2,579.09 around 10:13 a.m. but narrowed its losses and even turned to gains. It then fluctuated throughout the day, showing mixed trends before closing slightly lower. Foreigners and institutions sold a net 288.9 billion KRW and 90.9 billion KRW respectively, while individuals bought a net 345.7 billion KRW.

Among the top market capitalization stocks, LG Chem rose 3.79%, showing the largest gain. Kia followed with a 2.38% increase, supported by continued buying from foreigners and institutions. Kakao (2.15%), Hyundai Motor (1.39%), NAVER (1.09%), and SK Hynix (0.45%) also rose. On the other hand, Samsung SDI (-1.52%), Samsung Biologics (-0.63%), and LG Energy Solution (-0.51%) declined.

By sector, the transportation and warehousing sector showed strong performance, rising 2.59%. Additionally, paper and wood rose 1.94%. Medical precision (1.41%), services (0.87%), chemicals (0.69%), textiles and apparel (0.68%), and distribution (0.26%) also increased. Insurance and securities fell 2.54% and 2.25% respectively, and the financial sector declined 1.64%.

The KOSPI showed a cautious stance ahead of the US April Consumer Price Index announcement scheduled for later that night. Huh Jae-hwan, a researcher at Eugene Investment & Securities, explained, "The market is waiting for the US April CPI results," adding, "Concerns about a recession still seem to remain."

Park Kwang-nam, a researcher at Mirae Asset Securities, also said, "Since the US CPI announcement is imminent, investor sentiment does not seem to improve easily," and added, "There is growing expectation for an inflation peak-out, but the direction will be determined once the actual data is released."

Park also explained, "Although China's price indicators came out higher than expected, they showed a decline compared to the previous month, leading to expectations of an inflation peak-out, which caused a rebound in the Chinese stock market," adding, "This also had a positive impact on the domestic stock market." China's April Producer Price Index (PPI) rose 8% year-on-year, the lowest in a year. The April Consumer Price Index (CPI) rose 2.1% year-on-year, exceeding the previous figure (1.5%). However, it remains within the government's management target of 3% set at the beginning of the year.

On the same day, the KOSDAQ started at 853.73, down 2.41 points (0.28%) from the previous day, but later turned to gains and closed higher. The KOSDAQ recorded 866.34, up 10.20 points (1.19%) from the previous trading day. Individuals and foreigners sold 60.2 billion KRW and 24 billion KRW respectively, while institutions bought a net 92.2 billion KRW.

Among the top market capitalization stocks, HLB, which attracted attention as a related stock to the opening of Bio Korea 2022, the largest pharmaceutical and bio event in Korea, rose 7.27%. Additionally, Celltrion Healthcare (3.40%), L&F (3.26%), and Celltrion Pharm (2.42%) also showed gains.

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