Stock Market Starts Lower... Concerns Over Economic Recession Highlighted

On the 8th, the KOSPI index opened at 2,633.53, up 7.19 points (0.27%), as dealers were busy working in the Hana Bank dealing room in Euljiro, Seoul. The won-dollar exchange rate started at 1,255.0 won, down 2.7 won. Photo by Moon Honam munonam@

[Asia Economy Reporter Hwang Junho] On the 9th, the stock market opened lower due to concerns about an economic recession.

On that day, the KOSPI started the session at 2,618.92, down 0.28% from the previous close. Five minutes later, the decline widened to 0.58%. While individual investors were net buyers worth 60.7 billion KRW, foreign investors and institutions were net sellers worth 50.3 billion KRW and 11.9 billion KRW, respectively.

Among all listed stocks, 631 stocks were declining, while 178 stocks were rising. Most of the top market capitalization stocks were also showing a downward trend.

Samsung Electronics, the unchanging market leader, was trading down 0.61% at 64,900 KRW, and LG Energy Solution was also down 0.71%. This decline in semiconductor-related stocks is attributed to the drop in the Philadelphia Semiconductor Index in the US stock market the previous day.

Concerns about an economic recession resurfaced in the US stock market, causing technology stocks to struggle. Samsung Biologics recorded a 2.66% decline after recent gains, and NAVER was down 1.08%.

By sector, only the banking sector (up 0.35%) showed gains. Due to recession fears, the US 10-year Treasury yield surpassed 3% again the previous day, increasing preference for safe-haven assets and drawing attention to financial stocks.

The KOSDAQ also opened lower and widened its losses. At this time, the KOSDAQ was down 0.71% at 868.72. Individual investors supported the index with net purchases worth 41 billion KRW, but foreign and institutional investors were net sellers worth 40.1 billion KRW and 1.3 billion KRW, respectively, pushing the index downward.

Most KOSDAQ stocks were declining, and all top market capitalization stocks were also down. Wemade fell 2.94%, while Celltrion Healthcare, L&F, Kakao Games, Pearl Abyss, Celltrion Pharm, Cheonbo, and CJ ENM showed declines in the 1% range. By sector, other services, transportation, and venture companies recorded slight gains.

Han Ji-young, a researcher at Kiwoom Securities, stated, "Since today is the simultaneous expiration day for futures and options, it is necessary to keep open the possibility of increased market volatility due to rapid changes in futures and options supply and demand by foreign and institutional investors in the late session and simultaneous quotes." She added, "Considering major external events such as China's import-export indicators, the ECB monetary policy meeting, and the US consumer price index the following day, it is expected to be a day of cautious trading. However, a differentiated market is expected among sectors, focusing on Chinese infrastructure investment and deregulation-related stocks (materials, games, etc.)."

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