KOSPI Hits New Low Again Amid Foreign Sell-Off Bombardment... Falls Below 2400 Level (Comprehensive)

[Asia Economy Reporter Kwon Jae-hee] On the 20th, the KOSPI index plunged below the 2400 mark, hitting a new yearly low once again. As the U.S. Federal Reserve (Fed) hinted at rapid tightening, concerns over a global economic recession grew, prompting foreign investors to sell nearly 660 billion KRW, dragging the index down. The KOSDAQ index also started with a slight rise but gradually widened its losses, closing below the 800 mark. Both the KOSPI and KOSDAQ indices hit new yearly lows amid continued foreign selling on the day.

On this day, the KOSPI index closed at 2391.03, down 2.04% (49.90 points) from the previous trading day. The KOSPI opened at 2449.89, up 0.37% (8.96 points) from the previous day, but losses widened as the afternoon progressed. At one point during the session, it dropped to 2373.35, the lowest level since November 5, 2020 (2370.85).

Lee Kyung-min, a researcher at Daishin Securities, analyzed, "The rise in the won-dollar exchange rate appears to have increased selling pressure from foreign investors," adding, "Investor sentiment has contracted to levels seen during the 2008 financial crisis, indicating proximity to a short-term turning point."

By investor type, individuals and institutions were net buyers of 183.1 billion KRW and 444.8 billion KRW respectively, while foreign investors alone were net sellers of 665.4 billion KRW.

Among the top 10 companies by market capitalization, all stocks except Samsung SDI (0.54%) and Hyundai Motor (0.29%) declined. Samsung Electronics (-1.84%), LG Energy Solution (-3.29%), SK Hynix (-1.97%), Samsung Biologics (-1.20%), Samsung Electronics Preferred (-3.07%), LG Chem (-1.04%), NAVER (-1.47%), and Kakao (-3.60%) all showed downward trends.

By sector, all sectors except telecommunications (0.16%) declined. The order of decline was electricity and gas (-4.52%), paper and wood (-4.46%), transportation and warehousing (-3.72%), construction (-3.65%), machinery (-3.27%), securities (-2.78%), medical precision (-2.56%), and non-metallic minerals (-2.54%).

The KOSDAQ index also closed at 769.92, down 3.60% (28.77 points) from the previous trading day. The KOSDAQ opened at 804.48, up 0.72% (5.79 points) from the previous day, but losses widened, hitting a new yearly low and ultimately falling below the 800 mark.

By investor type, individuals and institutions were net buyers of 113.3 billion KRW and 43.3 billion KRW respectively, while foreign investors sold stocks worth 148.3 billion KRW.

Among the top 10 KOSDAQ stocks by market capitalization, all stocks except Alteogen (2.12%) declined. EcoPro BM (-0.15%), Celltrion Healthcare (-2.08%), L&F (-0.12%), Kakao Games (-10.14%), HLB (-2.22%), Pearl Abyss (-4.86%), Celltrion Pharm (-1.34%), Chunbo (-1.79%), and CJ ENM (-2.11%) all recorded losses.

By sector, all sectors recorded declines. Telecommunications services (-7.10%), digital content (-6.29%), other manufacturing (-5.82%), publishing/media replication (-5.75%), IT software (-5.39%), non-metallic (-4.88%), and software (-4.55%) were among the sectors affected.

Seo Sang-young, head of the Media Content Division at Mirae Asset Securities, analyzed, "The Fed has indicated a policy to ‘unconditionally’ control high inflation," adding, "The continuation of the Fed’s aggressive monetary policy stance and the increased volatility in the U.S. stock market are burdensome factors for the Korean stock market as well."

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