Samsung Electronics also falls by 1%... Caution over US CPI

KOSPI and Samsung Electronics Fall Over 1% Intraday
Heightened Caution Ahead of US Inflation Data Release

On the 12th, as the KOSPI index started slightly lower due to selling pressure from foreigners and institutions, a dealer is watching news related to the Ukraine situation in the Hana Bank dealing room in Euljiro, Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Hwang Junho] On the 12th, the KOSPI continued its downward trend amid heightened caution ahead of the U.S. March Consumer Price Index announcement scheduled for tonight.

In the afternoon, the KOSPI was recorded at 2,667.94, down 0.92% from the previous session. Individual investors engaged in net buying worth 444.1 billion KRW, helping to curb the index's decline. However, foreign and institutional investors sold off 296 billion KRW and 160.2 billion KRW respectively, preventing the index from recovering.

Among all listed stocks, 688 showed a downward trend. The decline among large-cap stocks also deepened. Samsung Electronics, the unwavering market leader, fell 1.18% to 67,100 KRW, while LG Energy Solution dropped 2.94% to 412,500 KRW.

By sector, medical precision (0.99%) and transportation and warehousing (0.17%) showed gains, but all other sectors recorded losses. Among individual stocks, concerns over a cement shortage spread due to disruptions in thermal coal supply caused by geopolitical risks in Ukraine, leading to gains in Sungshin Cement, Korea Cement, and Asia Cement.

The KOSDAQ also declined, down 1.20% from the previous session to 910.77. Individual investors accumulated low-priced stocks worth 140 billion KRW, but foreign and institutional investors sold 19.3 billion KRW and 114.5 billion KRW respectively, pushing the index downward.

Among all KOSDAQ stocks, 1,143 were in decline. Among the top market cap stocks, L&F and Pearl Abyss rose 1.18% and 1.74% respectively. However, most of the top KOSDAQ stocks, including the market leader EcoPro BM (2.23%) and Celltrion Healthcare (0.83%), showed declines. Notably, Kakao Games (-7.57%) and Wemade (-11.33%) deepened their losses. By sector, only the computer services industry showed a gain of about 0.57%, while all other sectors declined.

Lee Kyungmin, a researcher at Daishin Securities, analyzed, "The median one-year expected inflation rate from the New York Federal Reserve Bank rose 0.6 percentage points from the previous month to 6.6%, increasing inflationary pressure. Ahead of tonight's U.S. March Consumer Price Index announcement, caution expanded, worsening investor sentiment." He added, "In a situation where inflation and the Federal Reserve's quantitative tightening coexist, the sharp rise in U.S. Treasury yields has led to declines centered on technology and growth stocks."