KOSPI Sideways Around 2970... Persistent Inflation Concerns

KOSDAQ Slightly Weak... Slips to 982 Level

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] High inflation continues to act as a negative factor for the domestic stock market. Unlike the slightly rebounding U.S. stock market, the KOSPI and KOSDAQ remain sluggish.

As of 11:04 a.m. on the 13th, the KOSPI recorded 2,971.11, down 0.05% (1.37 points) from the previous day. At 10:42 a.m. that day, it showed a mixed trend, even turning to an increase.

High inflation remains a burden on the domestic stock market. On the 12th (local time), the U.S. Department of Labor announced that the U.S. Consumer Price Index (CPI) for December last year rose 7% compared to the same period last year. This is the highest level since June 1982. By detailed items, energy, used cars, and medical services rose 29.3%, 37.3%, and 2.5% respectively compared to the same period last year.

Seo Sang-young, a researcher at Mirae Asset Securities, explained, "High inflation persists, and since the domestic stock market showed a clear bullish trend the previous day, a process of digesting sell orders is necessary."

The U.S. stock market moved in the opposite direction to the domestic market. On the 12th at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 36,290.32, up 0.11% (38.30 points) from the previous day. The S&P 500 index closed at 4,726.35, up 0.28% (13.28 points) from the previous trading day. The Nasdaq index, centered on technology stocks, closed at 15,188.39, up 0.23% (34.94 points).

On the KOSPI, individual investors showed strong selling pressure. Individuals sold a net 287 billion KRW. Foreigners and institutions bought a net 113.9 billion KRW and 161.7 billion KRW, respectively.

By industry, the trends were mixed. The medical precision sector had the largest decline at 5.09%. This was followed by pharmaceuticals (-0.82%), machinery (-0.41%), construction (-0.39%), and transportation equipment (-0.33%). On the upside were textiles and apparel (2.91%), steel and metals (1.88%), securities (1.29%), non-metallic minerals (1.03%), and electric and gas utilities (0.93%).

The top 10 stocks by market capitalization also showed mixed results. LG Chem had the largest drop at 3.36%. This was followed by Celltrion (-0.51%), Kia (-0.47%), and Samsung Electronics (-0.38%). NAVER (1.16%), Samsung SDI (0.61%), Kakao (0.41%), and SK Hynix (0.39%) rose. Samsung Biologics and Hyundai Motor remained flat.

At the same time, the KOSDAQ recorded 982.41, down 0.90% (8.92 points) from the previous day. The KOSDAQ started up 0.32% but then continued to decline.

Foreigners and institutions' selling pressure led to the index's decline. Foreigners and institutions sold a net 185.7 billion KRW and 19 billion KRW, respectively. Individuals bought a net 206.2 billion KRW.

Most sectors declined. The other services sector had the largest drop at 2.83%. This was followed by publishing and media reproduction (-2.47%), digital content (-2.33%), pharmaceuticals (-1.86%), and IT software & services (-1.76%). On the upside were machinery and equipment (1.46%), transportation (0.94%), telecommunications services (0.68%), broadcasting and telecommunications services (0.30%), and general electrical and electronics (0.26%).

Except for CJ ENM, all of the top 10 stocks by market capitalization declined. Kakao Games had the largest drop at 3.36%. This was followed by Wemade (-3.29%), HL Biopharma (-2.77%), Pearl Abyss (-2.61%), Celltrion Pharm (-1.46%), Celltrion Healthcare (-1.35%), L&F (-1.32%), EcoPro BM (-0.43%), and Chunbo (-0.39%). CJ ENM rose 0.14%.