KOSPI Falls Over 2% Below 2200 Again... KOSDAQ Also Drops Below 700

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jaehee] The KOSPI index, which had slightly declined, expanded its losses during the morning session, falling over 2% and dropping back below the 2200 level. The KOSDAQ index also briefly reversed to an increase during the session, recovering above 700, but soon turned downward again.

As of 11:03 AM on the 28th, the KOSPI index was trading at 2177.95, down 2.06% (45.91 points) from the previous trading day. The index opened the day at 2206.15, down 0.80% (17.71 points).

By investor type, individual investors were the sole net buyers, purchasing stocks worth 395.2 billion KRW. In contrast, foreign investors and institutions sold stocks worth 134.6 billion KRW and 273.6 billion KRW, respectively.

Among the top 10 KOSPI market capitalization stocks, all except Samsung Biologics (0.53%) were in decline. Samsung Electronics (-2.03%), LG Energy Solution (-1.01%), SK Hynix (-0.37%), Samsung Electronics Preferred (-1.13%), Samsung SDI (-2.73%), LG Chem (-2.81%), Hyundai Motor (-3.49%), NAVER (-2.69%), and Kia (-2.75%) all fell.

By sector, pharmaceuticals showed strength with a 0.60% gain. All other sectors were down, including non-metallic minerals (-4.01%), machinery (-2.93%), transportation equipment (-2.91%), insurance (-2.82%), telecommunications (-2.68%), construction (-2.65%), chemicals (-2.65%), and transportation and warehousing (-2.61%).

At the same time, the KOSDAQ index recorded 683.55, down 2.09% (14.56 points). The index opened at 696.38, down 0.25% (1.73 points), briefly recovered above 700 during the session, but soon reversed to a decline.

By investor type, individual investors again were net buyers with purchases worth 132.8 billion KRW, while foreign investors and institutions were net sellers with sales of 109.7 billion KRW and 20.1 billion KRW, respectively.

Among the top 10 KOSDAQ market capitalization stocks, Celltrion Healthcare (2.19%), EcoPro BM (0.42%), and Celltrion Pharm (0.82%) recorded gains. Meanwhile, L&F (-1.71%), HLB (-2.06%), Kakao Games (-4.53%), EcoPro (-1.94%), Pearl Abyss (-4.08%), Alteogen (-1.73%), and JYPEnt. (-5.99%) were down.

By sector, all sectors except food & beverage/tobacco (0.38%) and distribution (0.04%) were down. These include entertainment and culture (-4.33%), telecommunication services (-3.80%), non-metallic (-3.18%), paper & wood (-3.08%), digital content (-2.88%), telecommunication broadcasting services (-2.88%), and machinery equipment (-2.74%).

Han Ji-young, a researcher at Kiwoom Securities, said, "It is necessary to keep in mind that the number of margin accounts lacking collateral surged after last Monday’s market crash," adding, "Considering that forced liquidation usually occurs two trading days later, the volume related to forced liquidation could increase supply-demand volatility."