Global Stock Market Correction Shakes Korean Market... KOSPI Plummets 2.6%

KOSDAQ also closes down 4.3%... Genexine, ranked 7th in market cap, falls over 10%

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] On the 24th, both the KOSPI and KOSDAQ closed down more than 2%. The decline in the U.S. stock market, triggered by selling pressure centered on tech stocks, appeared to weigh on the domestic market as well.

On that day, the KOSPI closed at 2,272.70, down 2.59% (60.54 points) from the previous day. It started the day down at 2,295.62, briefly recovered to the 2,300 level in the early session, but soon widened its losses.

Foreigners and institutions showed strong selling pressure, with net sales of 195.8 billion KRW and 154.2 billion KRW respectively. Meanwhile, individuals were net buyers with 356.7 billion KRW.

All sectors closed lower. Non-metallic minerals and pharmaceuticals fell the most, down 5.61% and 5.41% respectively. They were followed by transportation equipment (-3.79%), construction (-3.56%), and steel & metals (-3.56%).

The top 10 market capitalization stocks also struggled. Except for SK Hynix, which rose 0.8%, all other stocks declined. Celltrion and Samsung SDI had the largest drops at 6.0% each. Samsung Biologics (-4.5%), Hyundai Motor (-4.4%), Kakao (-3.6%), LG Household & Health Care (-2.5%), Samsung Electronics (-1.3%), and NAVER (-0.8%) followed.

The KOSDAQ’s decline was even steeper. It closed at 806.95, down 4.33% (36.50 points) from the previous session. This marked a retreat below the 800 level just six trading days after rising above 900 on the 16th.

Again, foreigners and institutions were net sellers, with net sales of 40.5 billion KRW and 121.2 billion KRW respectively, while individuals were net buyers with 185.5 billion KRW.

All sectors except publishing & media duplication, which rose 0.26%, fell. Several sectors dropped more than 5%, including paper & wood (-5.94%), other services (-5.46%), and general electric & electronics (-5.31%). Other sectors with significant declines included digital content (-4.96%), pharmaceuticals (-4.81%), and distribution (-4.65%).

All of the top 10 market capitalization stocks declined. Genexine fell 10.7%, showing a double-digit drop. EcoPro BM (-9.4%), Alteogen (-8.3%), Kakao Games (-8.2%), and Celltrion Pharm (-7.6%) also fell well over 5%. Even the smallest decliner, Seegene, dropped about 4.4%.