KOSPI at 2350 in the Afternoon... Battery Stocks Impacted by Sharp Decline in LG Energy Solution and Samsung SDI

On the 17th, dealers are working in the dealing room of Hana Bank in Euljiro, Seoul, as the KOSPI index briefly fell below the 2400 level in early trading due to the impact of a sharp decline in global stock markets. The intraday break below 2400 on the KOSPI is the first in about 1 year and 7 months since November 5, 2020 (2370.85). Photo by Moon Honam munonam@

[Asia Economy Reporter Hwang Yoon-joo] On the afternoon of the 30th, both the KOSPI and KOSDAQ are falling by over 1%. The KOSPI is showing weakness, dropping to the 2350 level due to selling pressure from foreigners and institutions. LG Energy Solution and Samsung SDI have plunged sharply, affecting the secondary battery stocks in the KOSDAQ market as well.

As of 1:22 PM, the KOSPI is trading at 2354.08, down 1.01% (23.91 points) from the previous day. The KOSPI opened at 2368.57, down 0.40% (9.42 points), and has been fluctuating around the 2350 level while widening its losses.

The index is being weighed down by combined selling from foreigners and institutions. Foreigners and institutions are net selling 170.2 billion KRW and 185.3 billion KRW respectively. Foreigners are also selling 142 billion KRW in the futures market. Individuals are net buying 342.5 billion KRW.

On this day, the won-dollar exchange rate started at 1300.5 won, up 1.5 won, dampening risk asset investment sentiment from the start of trading. It has since fallen below 1300 won.

On the 17th, 'InterBattery 2022' held at COEX in Samseong-dong, Gangnam-gu, Seoul, was bustling with visitors. Photo by Hyunmin Kim kimhyun81@

Among the top 10 stocks by market capitalization, the decline in secondary battery stocks such as Samsung SDI (-5.44%) and LG Energy Solution (-4.60%) is notable. Meanwhile, only Hyundai Motor (+3.70%) and Kia (+2.08%) are rising.

By industry, most sectors are falling, with textile and apparel (-4.21%), chemicals (-2.51%), non-metallic minerals (-2.55%), and electrical and electronics (-2.00%) showing significant declines. Despite this, construction (+3.48%) and transportation equipment (+2.57%) are recording strong gains.

As of 1:27 PM, the KOSDAQ is at 752.79, down 1.25% (9.56 points) from the previous day. The KOSDAQ opened slightly up by 0.01% (0.10 points) at 762.45 but soon turned downward and is maintaining a decline of over 1%.

In the afternoon, foreign selling intensified. Foreigners and institutions are net selling 203 billion KRW and 51.2 billion KRW respectively. Individuals alone are net buying 267.2 billion KRW.

The top 10 stocks by market capitalization show a mixed pattern. Secondary battery stocks such as L&F (-7.49%) and EcoPro BM (-6.51%) have high decline rates. The sharp drops in LG Energy Solution and Samsung SDI appear to be affecting related KOSDAQ stocks as well.

Looking at sector trends, the semiconductor sector's weakness stands out. General electrical and electronics (-4.83%), IT components (-3.95%), paper/wood (-3.81%), chemicals (-3.41%), IT hardware (-3.14%), and semiconductors (-2.90%) are falling in that order.

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