KOSPI Ends Four-Day Decline at 2382.81 Amid Recession Concerns...

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[Asia Economy Reporter Kwon Jaehee] On the 7th, the KOSPI index closed at the 2380 level, down 0.43%, marking the fourth consecutive day of decline amid recession concerns.

On that day, the KOSPI index closed at 2382.81, down 0.43% (10.35 points) from the previous trading day. The index opened at 2385.87, down 0.30% (7.29 points) from the previous day, and during the session, it dropped to as low as 2377.98. However, in the afternoon session, the decline narrowed, and the index fluctuated around the 2380 level.

By investor type, foreigners and institutions sold stocks worth 201 billion KRW and 17.4 billion KRW respectively, pulling the index down. In contrast, individual investors defended the index by net buying stocks worth 201.3 billion KRW.

On that day, the Korean stock market continued its weakness influenced by the U.S. stock market’s decline, which closed lower due to recession concerns expressed by CEOs of global investment banks (IBs).

On the 6th (local time), the three major U.S. stock indices all closed down: the Dow Jones Industrial Average (-1.03%), the Standard & Poor’s (S&P) 500 index (-1.44%), and the Nasdaq index (-2.00%).

Earlier, economic indicators such as the November employment report showed solid performance, raising concerns about further interest rate hikes by the Federal Reserve (Fed). Meanwhile, recession forecasts from major IBs like Goldman Sachs and JP Morgan dampened investor sentiment.

However, in the afternoon, China’s easing of COVID-19 related restrictions helped prevent further declines in the KOSPI.

China’s health authorities announced that asymptomatic and mild COVID-19 cases could, in principle, choose self-isolation, and the requirement to present a negative PCR test result for inter-regional travel was abolished.

Lee Kyungmin, a researcher at Daishin Securities, explained, "Today, the KOSPI repeatedly fluctuated within a limited range amid net selling by foreigners. As recession concerns became prominent, the KOSPI declined, but in the afternoon, news from China positively influenced investor sentiment, reducing the extent of the decline."

Among the top 10 KOSPI market capitalization stocks, only secondary battery stocks LG Energy Solution (0.72%) and Samsung SDI (0.28%) closed higher. The others, including Samsung Electronics (-0.51%), Samsung Biologics (-0.84%), SK Hynix (-2.59%), LG Chem (-1.02%), Samsung Electronics Preferred (-0.74%), Hyundai Motor (-0.91%), NAVER (-1.08%), and Kia (-0.15%), all closed lower.

By sector, insurance (1.38%), transportation and warehousing (1.03%), steel and metals (0.84%), non-metallic minerals (0.71%), electric and gas utilities (0.69%), textiles and apparel (0.60%), and medical precision instruments (0.51%) recorded gains. Conversely, finance (-1.14%), construction (-0.90%), securities (-0.69%), chemicals (-0.64%), electrical and electronics (-0.56%), and transportation equipment (-0.45%) sectors declined.

The KOSDAQ index closed at 718.14, down 0.18% (1.30 points) from the previous session.

The index opened at 715.63, down 0.53% (3.81 points) from the previous trading day. It briefly turned positive during the session but ultimately closed slightly lower.

Among the top 10 KOSDAQ market capitalization stocks, EcoPro BM (0.57%), Celltrion Healthcare (1.10%), L&F (1.38%), and Cheonbo (1.45%) closed higher, while Kakao Games (-1.30%), EcoPro (-0.81%), Pearl Abyss (-2.50%), Rino Industrial (-3.41%), and Celltrion Pharm (-0.46%) closed lower. HLB remained unchanged.

By sector, textiles and apparel (2.05%) showed strength, while distribution (0.92%), food and tobacco (0.90%), and entertainment and culture (0.86%) recorded slight gains. Telecommunications services (-3.32%), communication and broadcasting services (-1.78%), non-metallic minerals (-1.31%), paper and wood (-1.18%), and semiconductors (-1.05%) showed weakness.

On that day, the trading value on the KOSPI and KOSDAQ markets was 5.9782 trillion KRW and 4.9515 trillion KRW, respectively.

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