KOSPI and KOSDAQ Start Lower... Early Session Losses Narrow

Foreigners' Solo Net Buying Trend

[Asia Economy Reporter Minji Lee] The KOSPI and KOSDAQ indices opened lower, influenced by the decline in the U.S. stock market. Concerns over the spread of Omicron and the supply-demand burden caused by accelerated tapering are analyzed to have dampened risk asset preference sentiment.

As of 9:08 a.m. on the 2nd, the KOSPI stood at 2,888.32, down 0.39% (11.40 points) from the previous trading day. The KOSPI started the day at 2,874.64, down 0.86% (25.08 points) from the previous day, but the decline appears to have narrowed due to foreign investors' buying. Looking at investment trends, foreigners alone bought stocks worth 106.8 billion KRW, while individuals and institutions sold stocks worth 19.8 billion KRW and 95.4 billion KRW, respectively.

The U.S. stock market fell sharply the previous day, negatively reacting to news of Omicron cases and inflation concerns, as well as Federal Reserve Chairman Powell's remarks that tapering could accelerate. Accordingly, the domestic stock market is interpreted as digesting the negative factors from the U.S. market. Ji-young Han, a researcher at Kiwoom Securities, stated, "The domestic stock market is expected to give back the gains from the previous day, making downward pressure inevitable."

Among the top market capitalization stocks, all except SK Hynix (1.29%) and LG Chem (1.11%) are showing declines. Samsung Electronics traded at the same price as the previous day (74,400 KRW), while NAVER (-1.15%), Kakao (-0.82%), Samsung SDI (-0.87%), Hyundai Motor (-1%), and Kia (-1.35%) are on a downward trend. The rise in semiconductor-related companies is attributed to the strong performance of major U.S. semiconductor companies such as Micron (1.4%). Researcher Han explained, "The solid fundamentals of Korea confirmed through strong exports in November, the decline in the exchange rate, and the strength of semiconductor stocks will support the lower bound of the index."

At the same time, the KOSDAQ index stood at 968.05, down 0.93% (9.10 points) from the previous trading day. The KOSDAQ index started the day at 967.34, down 1% (9.81 points) from the previous day. Looking at investment trends, individuals and foreigners bought stocks worth 14.4 billion KRW and 2 billion KRW, respectively, while institutions alone sold stocks worth 15 billion KRW.

Among the top market capitalization stocks in the KOSDAQ market, most are declining. Celltrion Healthcare (-0.36%), EcoPro BM (-1.87%), Pearl Abyss (-3.45%), L&F (-1.74%), Kakao Games (-1.34%), and Wemade (-5.19%) are on a downward trend, but Seegene, a diagnostic kit-related stock, surged about 4.17%.