Black Monday... KOSPI Drops 2.02%, KOSDAQ Falls 2.57%

Only 61 Out of All Stocks Rise
Direct Hit to Secondary Battery VS. Only Insurance Sector Rises
KOSDAQ 600 Index May Also Fall

On the 14th, when the US stock market plummeted due to inflation fears, the won-dollar exchange rate and KOSPI were displayed in the dealing room of Hana Bank in Euljiro, Seoul. On that day, the exchange rate surpassed 1,390 won for the first time in 13 years and 5 months. Photo by Moon Honam munonam@

[Asia Economy Reporter Junho Hwang] On the 26th, the KOSPI is showing a decline of over 2% amid various negative factors.

On the morning of the day, the KOSPI opened at 2260.80, down 29.30 points (1.28%), and as of 9:25 AM, it recorded 2243.78, down 2.02%. Although institutions showed a net buying intention worth 97.5 billion KRW, individual and foreign investors showed net selling of 37.6 billion KRW and 59.5 billion KRW respectively, causing the index to take a steep downward path.

Among all stocks, only 61 stocks are on the rise. The decline in market capitalization top stocks is also significant. Samsung Electronics, the unwavering leader, recorded 53,700 KRW, down 1.47% compared to the previous session. SK Hynix also fell by 1.56%, showing a similar level of decline as Samsung Electronics.

LG Energy Solution, ranked second in market capitalization, dropped by 3.04%. LG Chem, which was spun off from LG Energy Solution, plunged by 4.30%. Samsung SDI fell by 0.82%, showing relatively strong stock price defense among top secondary battery stocks. Hyundai Motor showed a rare decline of 3.15%.

Amid the overall market downturn, the insurance sector (0.33%) is the only one showing an upward trend. Although it is expected to benefit from interest rate hikes, the increase is minimal. Hyundai Marine & Fire Insurance rose by 1.45%, Samsung Fire & Marine Insurance by 0.76%, and DB Insurance by 0.33%.

The situation in KOSDAQ is not much different. It started at 719.60, down 9.76 points (1.34%), but widened the decline to record 710.58, down 2.57%. Foreigners and institutions recorded net buying of 11.6 billion KRW and 11.4 billion KRW respectively, but individuals engaged in net selling of 31.5 billion KRW, causing the index to show a sharp decline.

Among the top market capitalization stocks, only Celltrion Healthcare rose by 0.62%. EcoPro BM, L&F, and EcoPro fell by more than 5%. There were no sectors showing gains among all industries.

Han Ji-young, a researcher at Kiwoom Securities, diagnosed, "Following this month's FOMC, the market is expected to enter a phase of testing yearly lows influenced by the spread of pessimism, the easing of tightening fears through statements by Federal Reserve (Fed) officials, U.S. core PCE inflation, and Micron Technology's earnings."

Lee Kyung-min, a researcher at Daishin Securities, predicted, "A rebound will come after the short-term sharp decline. If you have cash reserves or can engage in short-term trading, you can make short-term profits focusing on semiconductor and large internet stocks. However, investors with a large stock allocation should wait a bit rather than chasing sales, as there will be opportunities to sell at somewhat higher prices than now."

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