KOSPI Narrows Losses to Reclaim 2400 Level... Individual Investors 'Buy'

On the 14th, when the US stock market plummeted due to inflation fears, the won-dollar exchange rate and the KOSPI were displayed in the dealing room of Hana Bank in Euljiro, Seoul. On that day, the exchange rate surpassed 1,390 won for the first time in 13 years and 5 months. Photo by Moon Honam munonam@

[Asia Economy Reporter Kwon Jaehee] The KOSPI index, which started with a decline in the 2% range due to inflation fears, is narrowing its losses. It is interpreted that investment sentiment has sharply cooled as inflation is expected to last longer than anticipated and the Federal Reserve (Fed) is expected to maintain a strong hawkish (preference for monetary tightening) monetary policy.

As of 11:07 a.m. on the 14th, the KOSPI index stood at 2,413.87, down 1.46% (35.67 points) from the previous trading day. The index opened the day at 2,390.47, down 2.41% (59.07 points) from the previous day, dropping below the 2,400 mark shortly after the opening, but narrowed the losses during the morning session and reclaimed the 2,400 level.

Foreigners and institutions sold stocks worth 91 billion KRW and 243.9 billion KRW respectively, while individuals bought stocks worth 327.8 billion KRW, absorbing the volume sold by foreigners and institutions.

Seo Sangyoung, Head of Media Content at Mirae Asset Securities, analyzed, "The possibility of the Fed raising interest rates by 100 basis points at the September FOMC has emerged, which will act as a factor dampening investment sentiment."

Among the top market capitalization stocks, all except LG Energy Solution (0.10%) and Samsung SDI (0.50%) were down. Samsung Electronics (-1.89%), SK Hynix (-2.32%), Samsung Biologics (-1.43%), LG Chem (-1.05%), Samsung Electronics Preferred (-1.68%), Hyundai Motor (-0.50%), NAVER (-3.98%), Kia (-0.49%), etc.

By sector, all sectors except non-metallic minerals (0.84%) were down. Construction (-2.58%) had the largest decline, followed by services (-2.39%), pharmaceuticals (-1.98%), steel & metals (-1.76%), textiles & apparel (-1.70%), and electrical & electronics (-1.57%).

At the same time, the KOSDAQ index stood at 782.61, down 1.78% (14.18 points) from the previous trading day. The index opened at 775.93, down 2.62% (20.86 points) from the previous day.

By investor type, individuals alone bought stocks worth 118.5 billion KRW, while foreigners and institutions sold stocks worth 31.2 billion KRW and 80.3 billion KRW respectively.

Among the top 10 market capitalization stocks, all except EcoPro (4.94%) recorded declines. Celltrion Healthcare (-4.02%), EcoPro BM (-3.97%), L&F (-0.04%), HLB (-5.33%), Kakao Games (-3.28%), Pearl Abyss (-2.44%), Celltrion Pharm (-4.55%), Alteogen (-5.01%), Cheonbo (-0.67%), etc.

By sector, all sectors were down. Entertainment & culture (-3.05%), transportation equipment & parts (-2.88%), digital content (-2.60%), other services (-2.52%), semiconductors (-2.48%), telecommunications equipment (-2.45%), distribution (-2.43%) in order.

Samsung Securities researcher Seo Jeonghoon explained, "As the outlook that inflation will not easily subside has emerged, concerns about tightening in the market have also intensified. Inflation stabilization is more difficult than expected, and there is a new concern that the Fed's tightening intensity may become stronger because of this."