KOSPI Falls 1%, Breaks 2500 Level for First Time in 1 Year 7 Months... Lowest in Year for Two Consecutive Days

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] On the morning of the 14th, the KOSPI fell nearly 1%, breaking below the 2500 mark. It was the first time in about 1 year and 7 months since November 13, 2020, that the KOSPI dropped below 2500 during trading hours. With the decline at the start of the day, the KOSPI set a new year-to-date low for the second consecutive day following the previous day. Individual investors sold off more than 170 billion KRW in large-scale selling.

As of 9:15 AM on the 14th, the KOSPI stood at 2480.49, down 24.02 points (0.96%) from the previous trading day. The KOSPI opened at 2472.96, down 31.55 points (1.26%), showing high volatility in the early session. By investor type, individuals and foreigners sold net amounts of 179.2 billion KRW and 12.1 billion KRW respectively, while institutions alone bought 192.1 billion KRW.

Most of the top 10 market capitalization stocks are in the red. Samsung SDI fell the most, down 2.55% (14,000 KRW) to 535,000 KRW compared to the previous day. Others include ▲Naver (NAVER) (-2.36%) ▲Hyundai Motor (-1.71%) ▲Kakao (-1.57%) ▲LG Chem (-1.07%) ▲Samsung Electronics Preferred (-0.70%) ▲Samsung Electronics (-0.48%) ▲SK Hynix (-0.40%). LG Energy Solution (1.20%) and Samsung Biologics (0.51%) are holding up well despite the declining market.

All sectors in the KOSPI market are declining. Transportation equipment fell 2.05%, along with steel and metals (-2.05%), food and beverages (-1.97%), and paper and wood (-1.87%). Electrical and electronics (-0.53%) and pharmaceuticals (-0.51%) showed relatively smaller declines.

At the same time, the KOSDAQ index stood at 819.12, down 9.65 points (1.16%) from the previous day. The KOSDAQ opened at 816.25, down 12.52 points (1.51%), showing a volatile market. By investor type, individuals sold 83.1 billion KRW alone, while foreigners and institutions bought net amounts of 56.6 billion KRW and 26.6 billion KRW respectively.

Top market capitalization stocks in KOSDAQ show sector-specific trends. Secondary battery-related stocks such as L&F (3.04%), EcoPro BM (0.96%), and Cheonbo (0.65%) are rising. Some pharmaceutical-related stocks like HLB (1.92%) and Celltrion Healthcare (0.50%) are also increasing. On the other hand, entertainment stocks such as Wemade (-5.14%), Pearl Abyss (-2.56%), CJ ENM (-2.03%), and Kakao Games (-1.04%) are all sharply declining.

All KOSDAQ sectors are also in decline, centered on internet (-2.97%), digital content (-2.91%), and entertainment culture (-2.91%).

The decline in the domestic stock market at the start of the day appears to be a ripple effect from the previous day’s drop in the U.S. stock market. On the 13th (local time), major U.S. indices all closed sharply lower. The tech-heavy Nasdaq index plunged 4.68% (530.80 points) to 10,809.23, the Dow Jones Industrial Average fell 2.79% (876.05 points) to 35,516.74, and the S&P 500 dropped 151.23 points (3.88%) to 3,749.63, officially entering a bear market with a decline of more than 20% from its January 3 peak of 4,796.56.

Before the market closed, a Wall Street Journal (WSJ) report suggested that the Federal Reserve (Fed) might consider a 'giant step' (a 0.75 percentage point rate hike at once) rather than a 'big step' (a 0.5 percentage point hike) at the Federal Open Market Committee (FOMC) meeting on the 14th-15th, which intensified the downward trend sharply.

Han Ji-young, a researcher at Kiwoom Securities, said about the domestic stock market on the day, "Due to the lingering inflation shock, sharp declines in advanced country stock markets, and anxiety over the U.S. Federal Open Market Committee (FOMC), the market is expected to show a downward trend," adding, "Volatility is likely to continue until the June FOMC results are announced on the 15th."

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