'Black Tuesday'.. KOSDAQ Closes Down 4.15%

KOSDAQ and KOSPI Close Lower
Impact of Strong Dollar and Concerns Over Russia-Ukraine Escalation

On the 11th, dealers were working in the dealing room of Hana Bank in Euljiro, Seoul. On that day, the KOSPI index opened at 2193.02, down 39.82 points (1.78%) from the previous trading day. The won-dollar exchange rate opened at 1428.0, up 15.6 won. Photo by Moon Honam munonam@

[Asia Economy Reporter Hwang Junho] On the 11th, the stock market closed lower as it digested the accumulated negative factors during the holiday closure. The KOSPI showed weakness, dropping nearly 3% intraday, while the KOSDAQ fell more than 4%.

On that day, the KOSPI closed at 2,192.07, down 40.77 points (1.83%) from the previous session. From the start of trading, individual investors consistently recorded net buying, supporting the market throughout the day. Subsequently, as institutions switched to net selling and foreigners switched to net buying, the index fell nearly 3% intraday but narrowed the decline to the 1% range before the close. Foreign investors showed a net buying intention of 199.4 billion KRW, while institutions engaged in net selling worth 309.7 billion KRW.

Only 60 stocks out of the entire market rose that day. Among the top market capitalization stocks, only secondary battery-related shares increased. LG Energy Solution struggled to maintain an upward trend from early trading but expanded gains in the afternoon. It closed at 497,500 KRW, up 3.11% from the previous session. LG Chem and Samsung SDI also rose by 1.36% and 1.52%, respectively.

Samsung Electronics, the unchanging market leader, closed down 1.42% from the previous session. It experienced a decline of more than 3% intraday but gradually reduced losses in the afternoon. SK Hynix also ended the day at 90,200 KRW, down 1.10% from the previous session.

Park Gwangnam, a researcher at Mirae Asset Securities, stated, "The U.S. semiconductor export restrictions targeting China, the slowdown in the semiconductor industry, and negative outlooks on the automobile sector acted as negative factors. However, in the afternoon, a rebound buying by foreigners in the electrical and electronics sector helped reduce the decline."

On the 11th, dealers were working in the dealing room of Hana Bank in Euljiro, Seoul. On that day, the KOSPI index started at 2193.02, down 39.82 points (1.78%) from the previous trading day. The won-dollar exchange rate opened at 1428.0, up 15.6 won. Photo by Moon Honam munonam@

Hyundai Motor and Kia also fell by 4.27% and 5.07%, respectively. This appears to be influenced by UBS's downgrade of investment ratings on global automobile manufacturers.

The KOSDAQ was deeply red that day. It closed at 669.50, down 28.99 points (4.15%) from the previous session. However, the intraday decline reached a yearly high, unsettling investors. Individual investors supported the index with net buying worth 141.9 billion KRW. Nevertheless, foreigners and institutions sold off 64.7 billion KRW and 75.3 billion KRW, respectively, increasing the index's decline.

Only 88 stocks out of the entire market rose. Except for Ecopro BM, which rose 1.44% due to strong secondary battery demand, all others declined. Notably, the gaming sector showed significant declines. Pearl Abyss fell 7.10%, and Kakao Games dropped 3.54%.

The won-dollar exchange rate closed higher that day. The U.S. semiconductor export restrictions on China and the Russia-Ukraine war, among other geopolitical uncertainties, increased the value of the dollar. The won-dollar exchange rate closed at 1,435.20 KRW, up 1.61% from the previous session.

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