KOSPI Falls Below 2600... Samsung Electronics Hits 52-Week Low

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] This time, the KOSPI opened down more than 1% on news that the European Central Bank (ECB) may intensify its tightening measures.

As of 9:11 a.m. on the 10th, the KOSPI stood at 2,597.14, down 28.3 points (-1.08%) from the previous day. The KOSPI fell more than 1% from the start, dropping below the 2,600 mark for the first time in 13 trading days. On this day, individual investors were net buyers with 109.9 billion KRW, but institutional and foreign investors were net sellers with 7.1 billion KRW and 107 billion KRW respectively, causing the index to decline. Foreign investors also showed a net selling intention of 101.4 billion KRW in the futures market.

Two negative factors threatened the stock market even before the market opened. The ECB held its monetary policy meeting and decided to keep interest rates unchanged. However, in its press release, it announced plans to raise rates by 25 basis points in July. It also hinted at an additional hike in September. The rate hike in September depends on inflation trends, and if inflation worsens, a larger increase would be appropriate. As a result, the U.S. stock market closed lower. Rising government bond yields led to weakness centered on tech stocks.

There are also concerns that China's COVID-19 related city lockdown measures will continue. In some areas of Beijing, entertainment facilities have been shut down due to cluster infections of COVID-19, and some areas of Shanghai announced that PCR testing will be conducted for all residents on the 11th.

Seosangyoung, a researcher at Mirae Asset Securities, pointed out, "The rebound seen due to supply and demand factors related to the futures and options expiration date just before the market closed the previous day could lead to some pullback, which is also a reason why the market is expected to start lower today."

The stock prices of the top market capitalization KOSPI stocks all slipped. Samsung Electronics, the unchanging market leader, fell to around 63,000 KRW per share, hitting a 52-week low. Following were LG Energy Solution(-1.3%), Samsung Biologics(-1.11%), NAVER(-1.1%), Samsung Electronics Preferred (-1.01%), Kakao(-0.98%), SK Hynix(-0.95%), LG Chem(-0.85%), Samsung SDI(-0.36%), and Hyundai Motor(-0.27%) in that order.

By sector, textiles and apparel (0.62%) and paper and wood (0.09%) showed slight gains. Banks (-1.93%), steel and metals (-1.69%), insurance (-1.59%), transportation and warehousing (-1.36%), and pharmaceuticals (-1.33%) were on the decline.

The KOSDAQ index currently stands at 870.15, down 7.03 points (-0.80%) from the previous day. Foreign investors are net buyers of 2.4 billion KRW, and individuals are net buyers of 9.8 billion KRW, but institutions are net sellers of 12.4 billion KRW.

The top market capitalization stocks are showing red lights. HLB(-4.05%), Wemade(-2.44%), and Celltrion Healthcare(-2.05%) are extending their losses. By sector, telecommunications services (0.74%), food and tobacco (0.26%), and non-metallic minerals (0.22%) are showing gains.

In the Seoul foreign exchange market, the USD/KRW exchange rate is trading at 1,265.3 KRW, up 8.4 KRW from the previous day.

Han Ji-young, a researcher at Kiwoom Securities, said, "Beyond whether inflation has peaked, until visible signs appear that prices are being controlled, the stock market volatility is expected to continue to expand," adding, "The U.S. May consumer price index data scheduled to be released on the 10th will be the first turning point this month."

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