Individual Investors Net Buy of 850 Billion KRW Alone
US Economic Indicators Slowdown, Inflation and Economic Slowdown Concerns Expand
[Asia Economy Reporter Minji Lee] The KOSPI and KOSDAQ indices are both showing a downward trend.
On the 1st, the KOSPI closed at 2739.85, down 0.65% (17.80 points) from the previous trading day. The KOSPI started the day at 2745.85, down 0.43% (11.80 points) from the previous day, and continued to decline throughout the session. In the market, individual investors alone purchased stocks worth 844.6 billion KRW. Foreigners and institutions sold net amounts of 67.2 billion KRW and 782.2 billion KRW, respectively.
The market continued to decline due to concerns over expanding inflation and economic slowdown. Doubts about progress in peace negotiations between Russia and Ukraine increased, and when Russian President Putin ultimately enforced ruble payments for Russian gas, inflation concerns intensified. Additionally, the U.S. February Personal Consumption Expenditures (PCE) price index rose 6.4% year-on-year and 0.6% month-on-month, exceeding previous increases, while February personal consumption rose only 0.2% month-on-month, below the expected 0.5%, raising fears of economic slowdown.
Lee Kyung-min, a researcher at Daishin Securities, said, "In a situation where profit-taking sentiment strengthened following the rebound since mid-March, U.S. economic data led to a retreat in risk appetite," adding, "The simultaneous decline of major tech stocks, including semiconductors, in the U.S. market influenced the drop in large tech stocks today."
By sector, textiles and apparel (3.23%), telecommunications (0.99%), food and beverages (0.83%), and electric and gas utilities (0.66%) showed gains. The strength in textiles and apparel was influenced by news that Kwanglim, an affiliate of Ssangbangwool, is moving to acquire Ssangyong Motor. Both Ssangbangwool and Vivian hit the daily upper limit price today. The rotation market and increased investor interest in apparel-related stocks such as F&F (4.6%) and INDIEF (9.8%) also contributed.
All major market capitalization stocks declined. Samsung Electronics (-0.72%), LG Energy Solution (-3.17%), SK Hynix (-1.69%), NAVER (-1.47%), Samsung Biologics (-0.85%), Kakao (-0.47%), Samsung SDI (-1.51%), Hyundai Motor (-1.39%), and LG Chem (-1.69%) traded at lower prices than the previous day.
The KOSDAQ index closed at 940.57, down 0.42% (3.69 points) from the previous day. It started at 940.49, down 0.43% (4.04 points), and continued to decline throughout the session. Individual investors alone purchased stocks worth 171.2 billion KRW in the stock market today. Foreigners and institutions sold net amounts of 45.4 billion KRW and 116.1 billion KRW, respectively.
Among the top market capitalization stocks, L&F (0.66%), Pearl Abyss (1.81%), Kakao Games (0.89%), Chunbo (0.09%), and HLB (0.16%) rose, while Celltrion Healthcare (-1.69%), EcoPro BM (-1.86%), Celltrion Pharm (-0.92%), and Wemade (-2.8%) declined.
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