Snapval tech stocks weaken investor sentiment, KOSPI down 0.4%... Institutions continue 'selling'

[Image source=Yonhap News]

[Asia Economy Reporter Myung-hwan Lee] The KOSPI continued its weakness in the afternoon session on the 22nd, falling below the 2400 mark. This is attributed to weakened investor sentiment in tech stocks following an earnings shock reported by the U.S. social networking service (SNS) company Snap the previous day. The KOSDAQ index also turned slightly negative in the afternoon. Institutional investors are selling off more than 200 billion KRW in the KOSPI market.

As of 2 PM on the day, the KOSPI stood at 2399.51, down 0.40% (9.65 points) from the previous trading day. The KOSPI opened at 2405.37, down 0.16% (3.79 points), initially rose but soon reversed to a downward trend. Institutions alone sold off 240.3 billion KRW, accelerating the index's decline. Individual and foreign investors were net buyers of 225 billion KRW and 11.2 billion KRW, respectively.

Most of the top market capitalization stocks in the KOSPI market are declining. SK Hynix is trading at 100,000 KRW, down 2.44% (2,500 KRW) from the previous day. Samsung Electronics (-0.49%) is also on a downward trend. Secondary battery-related stocks such as LG Energy Solution (-1.54%), LG Chem (-1.23%), and Samsung SDI (-0.71%), which had surged significantly the previous day, are also falling together. On the other hand, finished car manufacturers like Hyundai Motor (1.59%) and Kia (0.49%) are rising.

The KOSPI's reversal to a decline appears to be a ripple effect from the earnings shock reported by the U.S. SNS company Snap. Kyung-min Lee, a researcher at Daishin Securities, explained, "Snap, which recorded an earnings shock in the U.S. stock market, plunged about 26% in after-hours trading, weakening investor sentiment in tech stocks and causing U.S. after-hours futures to reverse downward. Accordingly, the KOSPI, which had risen about 0.4% early in the session, also reversed to a decline." He added, "The intraday reversal to dollar strength and the renewed rise in short-term U.S. Treasury yields also acted as burdens."

At the same time, the KOSDAQ index stood at 794.94, down 0.03% (0.21 points) from the previous day. The KOSDAQ opened at 796.58, up 0.18% (1.43 points), expanding its gains and even briefly surpassing the 800 mark in the morning session. This was the first time in 24 trading days since May 20 that the KOSDAQ broke above 800 during the session. However, it has been moving sideways in the afternoon.

By investor type, individuals and institutions bought 59.2 billion KRW and 9.2 billion KRW respectively, while foreign investors alone sold 66.6 billion KRW.

Among the top market capitalization stocks in the KOSDAQ, EcoPro BM, a secondary battery-related company, stood out with a 3.39% (3,900 KRW) rise to 118,900 KRW. Cheonbo, another secondary battery supplier, is trading up 2.97% (6,800 KRW) at 235,700 KRW. Conversely, entertainment-related stocks such as Kakao Games (-3.10%) and Studio Dragon (-1.94%), as well as Celltrion Pharm (-1.24%) and Celltrion Healthcare (-1.01%), are declining.

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