KOSPI Faces Early Tightening Concerns... Weakness at 2840 Level Amid Foreign and Institutional Selling

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] The domestic stock market is also showing weakness following the decline in the New York stock market overnight due to concerns over early tightening by the U.S. Federal Reserve (Fed).

As of 9:25 a.m. on the 21st, the KOSPI is at 2,842.37, down 0.71% (20.31 points) from the previous trading day. The KOSPI opened at 2,837.49, down 0.88% (25.19 points) from the previous day.

By investor type, foreigners and institutions sold a net 125.5 billion KRW and 142.4 billion KRW respectively. Individuals bought a net 270.3 billion KRW, defending the index.

Among the top 10 stocks by market capitalization, performance was mixed. Samsung Electronics (-1.31%), SK Hynix (-3.20%), LG Chem (-0.41%), and Samsung SDI (-1.02%) were down. On the other hand, Samsung Biologics (1.47%), NAVER (1.19%), and Kakao (0.76%) rose.

At the same time, the KOSDAQ is at 955.97, down 0.28% (2.73 points) from the previous trading day. The KOSDAQ started the session at 950.67, down 0.84% (8.03 points), but has narrowed its losses.

By investor type, individuals bought a net 89.8 billion KRW. Foreigners and institutions sold stocks worth 51.6 billion KRW and 35.8 billion KRW respectively.

Among the top 10 stocks by market capitalization, Celltrion Healthcare (-0.30%), EcoPro BM (-1.91%), and Cheonbo (-1.05%) declined. Pearl Abyss (0.35%), Kakao Games (0.70%), Wemade (0.58%), HLB (0.58%), Celltrion Pharm (1.34%), and Seegene (1.01%) rose.

Since the beginning of the year, the outlook that the U.S. Federal Reserve (Fed) will pursue early monetary tightening continues to weigh on investor sentiment. Han Ji-young, a researcher at Kiwoom Securities, said, "At this point, it is necessary to focus on the Fed's policy uncertainty related to inflation, geopolitical conflicts, and the Q4 earnings season. The domestic stock market, which showed a rebound the previous day, is expected to face renewed downward pressure due to disappointment over the failure of the U.S. stock market rebound. It is appropriate to focus on risk management until the conclusion of the January Federal Open Market Committee (FOMC) meeting."