KOSPI and KOSDAQ Both Fall Over 1%... Impact of US Stock Market Weakness and Financial Policy Committee Caution

[Image source=Yonhap News]

[Asia Economy Reporter Myung-hwan Lee] On the morning of the 12th, the KOSPI and KOSDAQ indices are falling more than 1% in the market. This appears to be influenced by the cautious sentiment ahead of the Bank of Korea's Monetary Policy Committee (MPC) interest rate decision on the 13th, following the previous day’s decline in the U.S. stock market as major companies prepared to announce their Q2 earnings.

As of 10:47 a.m., the KOSPI is at 2315.14, down 1.07% (25.13 points) from the previous trading day. The KOSPI opened at 2330.88, down 0.40% (9.39 points) from the previous day, and the decline is gradually widening.

By investor type, individuals are the only buyers, purchasing stocks worth 176 billion KRW, while foreigners and institutions are net sellers of 55.3 billion KRW and 123.9 billion KRW, respectively.

Most of the top market capitalization stocks in the KOSPI are in a downward trend. NAVER is trading at 231,000 KRW, down 3.95% (9,500 KRW) from the previous day, showing a significant drop. Samsung SDI (-1.90%), LG Chem (-1.53%), Samsung Electronics Preferred (-1.48%), SK Hynix (-1.39%), and Samsung Electronics (-0.85%) are also declining. LG Energy Solution (1.52%) and Kia (1.03%) are rising. Hyundai Motor is trading at the same price as the previous day, 179,000 KRW.

By sector, insurance (0.93%) and pharmaceuticals (0.31%) are rising, while securities (-3.02%), non-metallic minerals (-2.97%), and steel and metals (-2.75%) are leading the declines.

At the same time, the KOSDAQ index is at 753.06, down 1.82% (13.98 points) from the previous day. The KOSDAQ opened at 762.18, down 0.63% (4.86 points), and the downward trend is gradually increasing. The index even fell more than 2% compared to the previous day at one point in the morning.

By investor type, individuals are the only buyers, purchasing stocks worth 197.8 billion KRW, while foreigners and institutions are net sellers of 131.1 billion KRW and 51.7 billion KRW, respectively.

Among the top market capitalization stocks in KOSDAQ, Studio Dragon is trading at 72,400 KRW, down 3.21% (2,400 KRW) from the previous day, showing a noticeable decline. L&F (-3.05%), EcoPro BM (-2.88%), and Pearl Abyss (-2.72%) are also falling. Celltrion Healthcare, the largest market cap stock in KOSDAQ, is up 0.84%. HLB (0.86%), Alteogen (0.49%), and Celltrion Pharm (0.38%) are also rising.

By sector, broadcasting services (1.43%) and telecommunications broadcasting services (0.35%) are rising, while semiconductors (-3.76%), non-metallics (-3.52%), and paper & wood (-3.17%) are declining.

Jae-won Choi, a researcher at Kiwoom Securities, said on the 12th about the domestic stock market, "Due to the sharp drop in the Nasdaq the previous day, growth stocks that had shown strong performance are expected to face downward pressure. The earnings results reflecting increased costs from rising raw material prices and wages, as well as consumption contraction, are expected to influence the stock market direction during the week."

The resurgence of COVID-19 in China also seems to be affecting the domestic stock market. Sang-young Seo, head of the Media Content Division at Mirae Asset Securities, said, "Concerns related to China's economic lockdown have become a key topic in the market, which has further widened the decline in the Korean stock market. The Korean stock market’s fluctuations will be determined by changes in the Chinese market," he predicted.

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