Impact of Ukraine Crisis and Oil Price Surge... KOSPI Steady Around 2690 Level

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] On the 18th, the KOSPI remained in a narrow range due to net selling by institutions and foreigners.

At 11:35 a.m. that day, the KOSPI recorded 2694.28, down 0.01% (0.23 points) from the previous trading day. The KOSPI started trading at 2695.64, up 0.04% (1.13 points) from the previous session. Institutions and foreigners net sold 107.8 billion KRW and 78.1 billion KRW respectively, while individuals net bought 204.7 billion KRW.

On the 17th (local time), the U.S. stock market closed higher, but its impact on the domestic market was limited. The Dow Jones Industrial Average and the large-cap focused S&P 500 rose 1.23%, and the tech-heavy Nasdaq rose 1.33%. Kim Ji-san, head of research at Kiwoom Securities, said, "There is optimism about easing tensions, but uncertainty remains due to the war between Russia and Ukraine, which seems to keep the market in a narrow range," adding, "Foreigners appear to be continuously reducing their domestic stock holdings due to a preference for safe assets amid the Ukraine situation."

Heo Jae-hwan, a researcher at Eugene Investment & Securities, said, "A phone call between U.S. President Joe Biden and Chinese President Xi Jinping is scheduled today, and the expectation that the U.S. may strongly warn China about its support for Russia seems to have dampened investor sentiment," adding, "There may also be an impact from rising international oil prices." On the 17th, at the New York Mercantile Exchange (NYMEX), April delivery West Texas Intermediate (WTI) crude oil rose 8.4% ($7.94) from the previous day to $102.98 per barrel.

Among the top market capitalization stocks, LG Chem showed strength, rising 4.26%. Following were Kakao (1.88%), Samsung Biologics (1.47%), Hyundai Motor (0.89%), and Naver (0.44%). SK Hynix (-1.21%), Samsung Electronics (-0.98%), Samsung SDI (-0.79%), and Kia (-0.41%) declined.

By sector, textiles and apparel (2.39%), medical precision (1.49%), transportation and warehousing (1.4%), and pharmaceuticals (1.14%) rose, while construction (-1.02%), electrical and electronics (-0.75%), securities (-0.37%), and manufacturing (-0.17%) fell.

The KOSDAQ index rose 0.22% (1.99 points) from the previous session to 916.12. Individuals net bought 123.5 billion KRW, while institutions and foreigners net sold 44.7 billion KRW and 40.8 billion KRW respectively.

Among the top market capitalization stocks, Kakao Games (2.68%), Cheonbo (2.47%), and L&F (1.24%) rose, while HLB (-4.41%), Wemade (-1.69%), and Celltrion Pharm (-0.29%) declined.