KOSPI Falls Below 2400 Again Amid Institutional Selling and Snap Shock Setbacks

[Image source=Yonhap News]

[Asia Economy Reporter Lee Myunghwan] On the 22nd, the KOSPI closed lower, giving up the 2400 level once again. The index turned downward due to institutional selling and the earnings shock from the U.S. social networking service (SNS) company 'Snap.' The KOSDAQ index also increased its decline toward the end of the trading session.

On this day, the KOSPI closed at 2393.14, down 0.66% (16.02 points) from the previous trading day. The KOSPI opened down 0.16% (3.79 points) at 2405.37 and initially rose but soon turned downward again, increasing its losses.

In the securities market, institutions alone sold stocks worth 306 billion KRW, accelerating the index's decline. Individuals and foreigners bought stocks worth 261.5 billion KRW and 29.5 billion KRW, respectively.

Most of the top market capitalization stocks in the securities market also closed lower. Samsung Electronics ended at 61,300 KRW, down 0.81% (500 KRW) from the previous day, and SK Hynix closed at 100,000 KRW, down 2.44% (2,500 KRW). Secondary battery-related stocks such as LG Energy Solution (-2.18%) and LG Chem (-1.41%), which had risen the previous day, also declined. Samsung Biologics (1.47%) and Hyundai Motor (1.06%) closed higher.

Looking at sector indices, transportation equipment (0.46%) and construction (0.20%) rose slightly, while electrical and electronics (-1.09%), insurance (-1.01%), and medical precision (-0.99%) declined.

The index's decline is interpreted as a result of the earnings shock from the U.S. SNS company Snap, which dampened investor sentiment toward technology stocks. Kim Seokhwan, a researcher at Mirae Asset Securities, said, "In U.S. after-hours trading, Snap plunged sharply after its earnings announcement, weakening overall investor sentiment for tech stocks, causing Nasdaq futures to fall. Profit-taking on recently rising semiconductor stocks and reduced foreign buying also led to a weaker Korean won." He added, "The cooling of investor sentiment in the Greater China markets due to concerns over defaults by real estate development companies also negatively impacted the domestic stock market."

The KOSDAQ index closed at 789.75, down 0.68% (5.40 points) from the previous trading day. The KOSDAQ opened at 796.58, up 0.18% (1.43 points), and at one point in the morning session, it surpassed the 800 level. However, in the afternoon session, the KOSDAQ moved sideways before increasing its decline toward the close.

By investor type, individuals were the sole net buyers with 95.1 billion KRW, while foreigners and institutions sold stocks worth 70.9 billion KRW and 21.6 billion KRW, respectively.

Among the top market capitalization stocks in KOSDAQ, secondary battery stocks rose. EcoPro BM closed at 117,600 KRW, up 2.26% (2,600 KRW), and Cheonbo ended at 234,500 KRW, up 2.45% (5,600 KRW). Entertainment stocks such as Kakao Games (-3.39%), Studio Dragon (-2.84%), and Pearl Abyss (-2.25%) saw significant declines. Celltrion Pharm (-2.35%) and Celltrion Healthcare (-1.88%) also closed lower.

By sector, general electrical and electronics (1.71%) and telecommunications equipment (0.60%) rose, while digital content (-2.98%), publishing and media replication (-2.83%), and broadcasting services (-2.21%) declined.

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