Expected to start higher on easing recession concerns
but declined due to worries over major US tech stocks' earnings
[Asia Economy Reporter Minji Lee] Despite the US stock market closing higher across the board on the 23rd, index futures showed a sharp decline, causing the domestic stock market to continue its downward trend.
As of 9:18 AM on the 24th, the KOSPI stood at 2644.50, down 0.11% (2.88 points) from the previous trading day. The index opened at 2638.94, down 0.32% (8.44 points) from the previous day, and continued its decline. Looking at investor trends, individual investors bought stocks worth 49.7 billion KRW, while foreigners and institutions sold stocks worth 13.6 billion KRW and 38.9 billion KRW, respectively.
On this day, the KOSPI was expected to start higher due to the US stock market's rise amid tariff reductions on China and easing recession concerns. However, index futures all showed a downward trend, suggesting a contraction in risk asset investment sentiment. Looking at the US futures index trends, Nasdaq futures fell 1.2%, showing the largest decline, while Dow futures (-0.2%) and S&P 500 futures (-0.6%) also declined.
Snap, the parent company of the US social media platform Snapchat, had a negative impact on the index as its earnings worsened and its after-hours trading price plummeted nearly 30%. In a report submitted to the US Securities and Exchange Commission (SEC) on this day, Snap stated, "The macroeconomic environment has significantly deteriorated compared to when the earnings guidance was provided on the 21st of last month, so the second-quarter earnings are expected to fall below the previously indicated lower bound." The expansion of concerns over Snap's earnings is analyzed to have increased selling pressure on major tech stocks.
At this time, among the top market capitalization stocks, LG Energy Solution (0.88%), LG Chem (0.37%), and Kia (0.24%) rose, while Samsung Electronics (-0.44%), SK Hynix (-1.77%), NAVER (-1.98%), Hyundai Motor (-0.8%), and Kakao (-1.33%) fell. It is estimated that the decline was more pronounced among IT companies.
At the same time, the KOSDAQ index stood at 880.41, down 0.36% (3.18 points) from the previous trading day. The index opened at 881.55, down 0.23% (2.04 points) from the previous day, and continued its decline. Looking at investor trends, individual investors alone bought stocks worth 37.8 billion KRW, while foreigners and institutions sold stocks worth 32.3 billion KRW and 0.7 billion KRW, respectively.
Among the top market capitalization stocks, Ecopro BM (0.66%), L&F (0.22%), Celltrion Healthcare (0.17%), and Chunbo (0.18%) rose. On the other hand, HLB (-1.14%), Kakao Games (-0.34%), Pearl Abyss (-0.33%), Celltrion Pharm (-0.64%), Wemade (-0.4%), and Rino Industries (-1.78%) fell.
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