[Asia Economy Reporter Ji-hwan Park] The domestic stock market is showing a simultaneous decline in the early session due to the burden from the previous day's index rise and the weakness of U.S. tech stocks.
On the 11th, the KOSPI was at 3,213.73 as of 9:21 a.m., down 1.09% (35.57 points) from the previous trading day. The index started at 3,239.92, down 0.29% (9.38 points) from the previous day, and the decline is widening.
The previous day, the KOSPI closed at a record high of 3,249.30, up 1.63% (52.10 points) from the previous trading day. It surpassed the previous record high of 3,220.70 set on the 20th of last month.
Overnight, the U.S. New York stock market closed lower due to inflation concerns and weakness in tech stocks. On the 10th (local time) at the New York Stock Exchange, the Dow Jones Industrial Average fell 0.10% (33.19 points) to 34,744.57, the Standard & Poor's (S&P) 500 index rose 1.04% (44.13 points) to 4,188.47, and the tech-heavy Nasdaq index dropped 2.55% (350.38 points) to 13,401.86.
By investor type, individual investors were the sole net buyers with 524 billion KRW. Foreigners and institutions sold stocks worth 493 billion KRW and 13.6 billion KRW, respectively.
Among the top 10 stocks by market capitalization, most showed a downward trend. SK Hynix had the largest decline at -3.85%. Samsung Electronics (-1.08%), NAVER (-2.49%), Samsung Biologics (-0.98%), and Hyundai Motor (-1.74%) also fell. LG Chem (0.11%) was the only stock to rise.
At the same time, the KOSDAQ index was down 1.21% (12.00 points) from the previous day at 980.80. The index started at 991.41, down 0.14% (1.39 points) from the previous session.
KOSDAQ also saw declines driven by selling from foreigners and institutions. On the day, foreigners and institutions were net sellers of 63 billion KRW and 33.9 billion KRW, respectively. Individuals were net buyers of 96.6 billion KRW.
Among the top 10 stocks by market capitalization, Celltrion Healthcare (-1.29%), Celltrion Pharm (-1.08%), Kakao Games (-1.11%), and Pearl Abyss (-2.61%) declined. Meanwhile, CJ ENM rose slightly by 0.13%.
Han Ji-young, a researcher at Kiwoom Securities, analyzed, "The Korean stock market appears to be under downward pressure as it enters the influence zone of the sharp decline in U.S. tech stocks amid short-term burden following the previous day's record high."
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