KOSPI '2500 Collapse' After 1 Year and 7 Months... KOSDAQ Also Falls Over 1%

On the 14th, KOSPI fell more than 1% in the early session, breaking below the 2500 level. Dealers are working in the Hana Bank dealing room in Euljiro, Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Myunghwan Lee] On the morning of the 14th, the KOSPI is moving below the 2500 level with a nearly 1% decline. It is the first time in about 1 year and 7 months since November 13, 2020, that the KOSPI has fallen below the 2500 mark during trading hours. With this decline, the KOSPI has recorded its lowest level of the year for two consecutive days following the previous day. The KOSDAQ index is also down nearly 2%.

As of 10:22 a.m., the KOSPI is at 2476.97, down 27.54 points (1.10%) from the previous trading day. The KOSPI opened at 2472.96, down 31.55 points (1.26%) from the previous day, showing significant volatility in the early session. At one point in the morning, the decline temporarily narrowed, briefly returning to the 2500 level. By investor type, individuals and foreigners sold 96.7 billion KRW and 124.8 billion KRW respectively, while institutions alone bought 208.5 billion KRW.

Among the top 10 stocks by market capitalization, all but one are falling. Samsung SDI is trading at 525,000 KRW, down 4.37% from the previous day, showing the largest decline. Other stocks also falling include ▲Hyundai Motor (-3.14%) ▲LG Chem (-1.78%) ▲Kakao (-1.05%) ▲Naver (-0.79%). LG Energy Solution is the only top market cap stock rising, up 2.89% on news of expanding its cylindrical battery production line.

All sectors in the KOSPI market are also declining. The largest drops are seen in Medical Precision (-2.79%), Construction (-2.46%), and Transportation Equipment (-2.34%). Transportation & Warehousing (-0.24%) and Electric & Electronics (-0.31%) are relatively less affected.

At the same time, the KOSDAQ index is at 813.55, down 15.22 points (1.84%) from the previous trading day. The KOSDAQ opened at 816.25, down 12.52 points (1.51%), showing high volatility similar to the KOSPI. By investor type, individuals and foreigners are net sellers of 41.7 billion KRW and 1.2 billion KRW respectively, while institutions are net buyers of 30.4 billion KRW.

The top market cap stocks in KOSDAQ show mixed trends by sector. Secondary battery-related stocks such as Ecopro BM (0.59%) and L&F (1.18%) are rising influenced by LG Energy Solution’s expansion. On the other hand, entertainment-related stocks including WeMade, down 11.78%, CJ ENM (-3.04%), and Pearl Abyss (-1.88%) are falling.

Most KOSDAQ sectors are also declining. Notable drops are seen in reopening-related sectors such as Food & Beverage & Tobacco (-3.30%), Digital Content (-3.15%), and Leisure & Culture (-2.99%). Transportation (0.17%) and IT Components (-0.46%) are holding up relatively well despite the downtrend.

On the 14th, Sangyoung Seo, Head of Media Content at Mirae Asset Securities, commented on the domestic stock market, saying, "The sharp decline in the U.S. stock market due to the Federal Reserve’s aggressive monetary policy is likely to be an additional factor for further declines in the Korean stock market." He added, "The slowdown in the OECD leading economic index and the narrowing of the U.S. long- and short-term interest rate spread, which highlight recession concerns, are also factors dampening foreign investor sentiment."

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