KOSPI Extends Decline Amid Inflation and Tightening Concerns... LG Energy Solution Falls to 390,000 Won Range

Foreigners and Institutions 'Sell' Pressure Weighs on KOSPI
KOSDAQ Rises on Buying by Institutions and Financial Entities

On the 10th, a dealer is checking news related to the presidential election in the Hana Bank dealing room in Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Hwang Yoon-joo] On the 11th, the KOSPI index widened its decline to over 1% after the market opened. This was due to concerns that inflation could be prolonged as the U.S. February inflation data came in higher than expected. Furthermore, the fourth round of negotiations between Russia and Ukraine ended without results, which is interpreted as dampening investor sentiment. LG Energy Solution failed to hold the 400,000 KRW level and dropped to the 390,000 KRW range. The KOSDAQ index opened lower but soon turned to an upward trend.

As of 10:44 a.m. on the same day, the KOSPI was trading at 2,652.24, down 28.08 points (-1.05%) from the previous trading day. The KOSPI opened at 2,665.95, down 14.37 points (-0.54%) from the previous day.

Foreigners and institutions sold 327.8 billion KRW and 207.8 billion KRW respectively, expanding their selling by about 2 times and 6 times compared to early trading, preventing the index from rising. Individuals were the only buyers, purchasing 530 billion KRW.

Among the top 10 market capitalization stocks, Kakao (+1.50%) turned to an upward trend, while LG Energy Solution widened its losses to -6.35%. Ultimately, the 400,000 KRW level was broken, and it is currently at 391,000 KRW. LG Chem initially rose (+0.40%) after the market opened but fell to -3.22%. Samsung Electronics dropped -1.54%, threatening the 70,000 KRW level again. Other stocks such as SK Hynix (-2.92%), Naver (-1.06%), Hyundai Motor (-1.78%), Samsung SDI (-2.58%), and Kia (-1.41%) also declined.

By sector, the electrical and electronics sector fell the most at -2.21%. Manufacturing (-1.53%), securities (-1.51%), chemicals (-1.14%), transportation equipment (-1.20%), and electric and gas utilities (-1.08%) were also down.

Seo Sang-young, a researcher at Mirae Asset Securities, analyzed, "The Russia-Ukraine talks ended without results, and Russia announced a halt to product exports to Western countries, raising concerns that inflation could rise further. Also, the European Central Bank (ECB) unexpectedly advanced the end date for asset purchases, which is a burden on the Korean stock market."

As of 11:08 a.m., the KOSDAQ index was up 4.29 points (+0.48%) at 893.37. The KOSDAQ opened at 888.57, down 0.51 points (-0.06%) on the day.

Institutions are net buyers of 26.6 billion KRW in the KOSDAQ market, and other financial investors such as financial investment firms are also buying, lifting the index. On the other hand, individuals and foreigners are net sellers of 8.4 billion KRW and 14 billion KRW respectively.

Among the top market capitalization stocks, Seegene fell 3.08%, dropping to 11th place in market cap. Lino Industrial rose 2.24%, climbing to 10th place. Celltrion Healthcare, ranked first in market cap, showed a reduced gain of 2.27%. Kakao Games, Wemade, and Celltrion Pharm are up 1.21%, 0.19%, and 1.06% respectively. Meanwhile, EcoPro BM (-1.89%), Pearl Abyss (-3.35%), L&F (-1.34%), HLB (-1.47%), and Chunbo (-0.58%) are declining.

The construction sector leads with a 5.77% increase. Entertainment culture and broadcasting services rose by 3.21% and 2.11% respectively. Conversely, general electrical and electronics (-0.66%), IT components (-0.55%), transportation equipment parts (-0.41%), digital content (-0.28%), semiconductors (-0.26%), machinery equipment (-0.21%), and chemicals (-0.03%) are down.