KOSPI Falls Below 2900... KOSDAQ Also Drops Over 1%

Foreigners and Institutions Strong Net Selling
Most Sector Indices Decline

Tightening and Economic Slowdown Concerns Extend to Large IPOs
Increased Volatility in Domestic Market Supply and Demand

[Asia Economy Reporter Minji Lee] The KOSPI is showing a decline of over 1%, falling below the 2,900 mark during intraday trading. Although individual investors continue to be net buyers alone, it appears insufficient to defend against the index's decline.

At 10:41 a.m. on the 17th, the KOSPI stood at 2,884.47, down 1.28% (37.45 points) from the previous trading day. This marks the first time in over a month since intraday trading on the 2nd of last month that the index has fallen below the 2,900 level. The KOSPI opened the day at 2,918.55, down 0.12% (3.37 points) from the previous close, and has been widening its losses since.

In the domestic stock market, foreigners and institutions sold stocks worth 154.4 billion KRW and 96.2 billion KRW, respectively. Individuals alone purchased stocks worth 241.4 billion KRW, continuing their net buying trend. Currently, the KOSPI is widening its losses as concerns over tightening policies and sluggish economic recovery are reflected. Last week, the U.S. released weak economic indicators such as retail sales and industrial production, which further heightened fears of a global economic slowdown. While the stance on interest rate hikes is strengthening, the economic contraction could negatively impact domestic export companies.

Looking at sector performance, a downward trend dominated. The pharmaceuticals sector fell 2.73%, followed by transportation equipment (-2.38%), machinery (-2.28%), and construction (-2.28%) with significant declines. Daewoong Pharmaceutical, which had shown a sharp rise last Friday after news confirmed the efficacy and safety of its new drug 'Inavogliflozin' in Phase 3 clinical trials, saw an over 8% drop due to profit-taking selling.

Among the top market capitalization stocks, only Samsung Electronics and NAVER rose by 0.13% and 1.17%, respectively, while most other stocks continued to decline. SK Hynix (-2.33%), Samsung Biologics (-2.94%), LG Chem (-1.26%), Hyundai Motor (-2.87%), Kakao (-0.43%), and Kia (-1.67%) all fell.

At the same time, the KOSDAQ index stood at 959.30, down 1.25% (12.19 points) from the previous trading day. The KOSDAQ opened at 971.81, up 0.04% (0.42 points) from the previous close, but soon turned downward and widened its losses. Regarding investor trends, institutions and individuals bought stocks worth 14.8 billion KRW and 93.4 billion KRW, respectively. Conversely, foreigners alone sold stocks worth 105.6 billion KRW.

Among the top market capitalization stocks on KOSDAQ, Celltrion Healthcare recorded a 5.52% drop to 66,800 KRW compared to the previous day. EcoPro BM (1.80%), L&F (2.22%), Wemade (1.68%), Chunbo (1.72%), and Lino Industrial (2.95%) rose, while Pearl Abyss (-0.79%), Kakao Games (-0.56%), and HLB (-1.15%) declined.

The current stock market appears to be in turmoil due to uncertainties surrounding the Federal Reserve's tightening measures. Ji-young Han, a researcher at Kiwoom Securities, diagnosed, "Global stock markets are experiencing a tightening shock as they fail to properly absorb the Fed's aggressive interest rate hikes aimed at curbing elevated inflation." She added, "The domestic stock market is expected to move influenced by China's December industrial production and retail sales data, domestic export indicators, and increased supply-demand volatility surrounding LG Energy Solution's IPO," suggesting a domestic market band of 2,880 to 2,980 points for this week.