KOSPI Takes First Break This Month... Weakness Around 3000 Level

[Image source=Yonhap News]

[Asia Economy Reporter Ji-hwan Park] On the 10th, the KOSPI showed a pause after seven consecutive trading days of gains this month. This is interpreted as a negative impact on investor sentiment due to the U.S. New York stock market closing lower amid concerns that tapering (asset purchase reduction) could accelerate amid inflation worries.

As of 9:18 a.m. on the day, the KOSPI stood at 3,008.60, down 0.69% (20.97 points) from the previous trading day. The index fell more than 1% in early trading, briefly breaking below the 3,000 level. Overnight, all major U.S. stock indices ended a three-day winning streak and closed lower. On the 9th (Eastern Time), at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 35,754.69, down 0.06 points (0.00%) from the previous close. The Standard & Poor's (S&P) 500 fell 33.76 points (0.72%) to 4,667.45, and the tech-heavy Nasdaq dropped 269.62 points (1.71%) to 15,517.37.

On the KOSPI, individual investors were the sole net buyers with 96.3 billion KRW. Foreigners and institutions both showed net selling of 64.6 billion KRW and 30.6 billion KRW, respectively.

Among the top 10 market capitalization stocks, all except KakaoBank (0.12%) declined. Samsung Electronics (-1.02%), SK Hynix (-2.02%), NAVER (-1.13%), Samsung Biologics (-0.87%), Kakao (-0.41%), and LG Chem (-2.14%) all fell.

At the same time, the KOSDAQ fell 0.55% (5.60 points) to 1,017.27.

By investor type, individuals defended the index with net buying of 143.1 billion KRW. Foreigners and institutions were net sellers of 69.5 billion KRW and 70.1 billion KRW, respectively.

Among the top 10 market capitalization stocks on KOSDAQ, performance was mixed. Celltrion Healthcare (-0.60%), EcoPro BM (-2.53%), Pearl Abyss (-3.35%), L&F (-2.04%), Kakao Games (-1.90%), and Wemade (-2.90%) declined. Meanwhile, Celltrion Pharm (0.32%) and Alteogen (0.46%) rose.

Ji-young Han, a researcher at Kiwoom Securities, said, "The domestic stock market is expected to show a breathing space as short-term profit-taking pressure follows seven consecutive trading days of gains amid U.S. consumer price caution in November. During the session, it will come under the influence of changes in the Chinese stock market due to the limited default realization of China’s Evergrande Group, but considering this issue has recently been digested by the market, the impact is expected to be limited."