KOSPI Declines Narrow... KOSDAQ Turns to Rise

Geopolitical Anxiety Eases
KOSPI Narrows Morning Losses
KOSDAQ Turns Positive

Due to the sharp rise in international oil prices, gasoline prices at gas stations nationwide continued to increase for the fifth consecutive week. According to Opinet, the oil price information site of the Korea National Oil Corporation, on the 20th, the retail price of gasoline at gas stations nationwide in the third week of this month rose by 26.6 won from the previous week to 1,718.4 won per liter. The rise in international oil prices is attributed to strong U.S. oil demand and escalating tensions between Russia and Ukraine. Fuel price information is displayed at a gas station in Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Hwang Junho] On the afternoon of the 21st, the stock market showed signs of narrowing losses amid a slight easing of geopolitical tensions.

As of 1:32 PM, the KOSPI was at 2733.92, down 0.39% from the previous session. Although the index briefly fell below the 2700 level early in the session, the losses gradually narrowed. Individual investors defended the index decline by net buying stocks worth 291.9 billion KRW. However, foreign investors sold stocks worth 81 billion KRW and institutions sold 221.3 billion KRW, so the downward trend could not be avoided.

The narrowing of losses is analyzed as a result of growing expectations that tensions between Russia and Ukraine may ease somewhat. Earlier in the morning, news emerged that a summit between the US and Russia might take place, proposed by the French president.

Among all KOSPI-listed stocks, 330 stocks were on the rise. Among the top market capitalization stocks, only Samsung Biologics (1.19%) and Kakao (1.75%) maintained upward momentum.

Samsung Biologics saw increased expectations after reporting record-high earnings. The company announced that last year it recorded sales of 1.568 trillion KRW and operating profit of 537.3 billion KRW. Operating profit grew more than eightfold in four years since the first profit was achieved in 2017.

Celltrion, ranked 14th in market capitalization, traded at 161,000 KRW, up 2.22% from the previous session, following a disclosure of an 80 billion KRW share buyback.

In the construction sector, stocks such as Dongbu Construction Preferred Shares (11.44%), Hwaseong Industry (4.96%), and DL E&C (4.18%) contributed to the sector’s strong performance (1.64%). Pharmaceuticals (1.33%) and machinery (1.24%) also showed upward trends.

The KOSDAQ index was at 879.74, down 0.22% at the same time. However, 33 minutes after the market report, it rose 0.06% to 882.23. Individual investors prevented the index from falling by net buying stocks worth 84.9 billion KRW, while foreign investors (74.8 billion KRW) and institutions (3.2 billion KRW) were net sellers.

Among all KOSDAQ stocks, 428 were on the rise. Most of the top market capitalization stocks showed gains. Celltrion Healthcare (2.25%), L&F (0.54%), Pearl Abyss (0.95%), Kakao Games (0.14%), Celltrion Pharm (1.16%), and CJ ENM (0.08%) all posted higher prices than the previous day.

By sector, the entertainment sector (3.53%), including RaemongRaein (12.35%), Wysiwyg Studios (6.60%), and JYP Ent. (6.38%), showed higher stock price increases compared to other sectors. Distribution, textiles, and non-metal sectors also posted gains in the 1% range.

Han Ji-young, a researcher at Kiwoom Securities, analyzed, "From the news, it raises doubts about what the US and Russia are thinking. It can be seen as a period where reopening stocks, semiconductor and export stocks, or growth stocks adjusted by price corrections are attractive entry points, but it is important to note that war news dominates market price movements, making it easy for the market to be out of sync."

As of this time, the USD/KRW exchange rate was at 1193.40 KRW, down 0.21% from the previous session. The Shinhan Financial Investment research team analyzed, "Despite geopolitical tensions, the possibility of an Iran nuclear deal caused an intraday decline."