KOSDAQ Barely Holds Above 980... Falls 2.90%
Institutional Selling Highlights... Foreigners and Institutions Sell for 6 Consecutive Days on KOSDAQ
[Asia Economy Reporter Gong Byung-sun] The domestic stock market was shaken by the Federal Reserve's (Fed) hawkish stance. Growth stocks, including big tech, experienced a sharp decline.
On the 6th, the KOSPI closed at 2,920.53, down 1.13% (33.44 points) from the previous day. It even dropped to 2,915.38 as of 3:17 PM that day.
This appears to be synchronized with the U.S. stock market. On the 5th (local time) at the New York Stock Exchange, the Dow Jones Industrial Average closed at 36,407.11, down 1.07% (392.54 points) from the previous day. The S&P 500 and Nasdaq also closed sharply down by 1.94% and 3.34%, respectively.
Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, “The big tech service sector declined as the Federal Open Market Committee (FOMC) presented a stronger hawkish stance. The synchronization with declining U.S. growth stocks and forecasts that the fourth-quarter earnings of last year would fall short of expectations affected big tech-related stocks.”
Institutional selling was strong. Institutions sold a net 482.7 billion KRW. Individuals and foreigners bought net 282.1 billion KRW and 180.9 billion KRW, respectively.
Most sectors declined. The service sector had the largest drop at 3.57%. This was followed by pharmaceuticals (-3.43%), securities (-2.13%), textiles and apparel (-2.10%), and machinery (-1.99%). Steel and metals (2.27%), construction (1.35%), transportation equipment (1.23%), and chemicals (0.29%) rose.
Many of the top 10 market capitalization stocks showed weakness. Kakao had the largest decline at 5.21%. This was followed by NAVER (-4.65%), Samsung Biologics (-2.67%), Samsung SDI (-0.93%), Samsung Electronics (-0.65%), SK Hynix (-0.40%), and Kia (-0.35%). LG Chem (3.92%), KakaoBank (0.72%), and Hyundai Motor (0.23%) rose. On this day, KakaoBank and POSCO (Posco) fluctuated back and forth for the 10th place in market capitalization.
The KOSDAQ closed at 980.30, down 2.90% (29.32 points) from the previous day. It fell to 978.83 as of 3:18 PM, dipping below the 980 mark during the session.
On the KOSDAQ, foreigners and institutions continued selling for six consecutive trading days. Foreigners and institutions sold a net 126.3 billion KRW and 245.6 billion KRW, respectively. Individuals bought a net 386.3 billion KRW.
Almost all sectors declined. Digital content had the largest drop at 9.19%, followed by IT software & services (-6.67%), entertainment and culture (-4.91%), software (-4.19%), and telecommunications equipment (-3.68%). Computer services (1.89%), information devices (0.31%), and food and tobacco (0.14%) rose.
All of the top 10 market capitalization stocks declined. Kakao Games had the largest drop at 14.24%, followed by Wemade (-11.75%), Pearl Abyss (-7.15%), Celltrion Pharm (-5.23%), Celltrion Healthcare (-3.80%), HLB (-3.23%), Chunbo (-3.02%), EcoPro BM (-2.79%), CJ ENM (-1.50%), and L&F (-1.36%).
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