KOSPI, KOSDAQ Decline Widens
Semiconductors, Games See Larger Drops
On the 18th, when the morning low temperature in Seoul continued to drop to minus 7 degrees Celsius, icicles formed on the branches along the Han River embankment in Yeouido, Seoul. Photo by Hyunmin Kim kimhyun81@
[Asia Economy Reporter Junho Hwang] On the 11th, the stock market started lower and continued to widen its losses.
On this day, the KOSPI opened at 2,193.02, down 39.82 points (1.78%) from the previous session. As of 9:19 a.m., the decline has expanded to 2.27%. While individuals and institutions are net buying at around 29 billion KRW and 69.7 billion KRW respectively, indicating bottom-fishing, foreign investors are net selling about 91.7 billion KRW, causing the index to widen its losses.
This is analyzed as a result of various negative factors dampening investor sentiment, including expectations that the Federal Reserve will continue its aggressive tightening due to strong September employment data, heightened possibility of escalation between Russia and Ukraine, and ongoing financial instability despite additional market interventions by the Bank of England.
Among all stocks, only 61 are rising. Large-cap stocks are also falling one after another. Notably, the steady market leader Samsung Electronics is showing a decline, trading at 54,200 KRW, down 4.56% from the previous session. SK Hynix, grouped in the same semiconductor sector, also fell 3.07%.
By sector, the decline in the transportation equipment sector stands out, down 3.74% from the previous session. The sector leaders Hyundai Motor and Kia plunged 3.99% and 5.63%, respectively.
The KOSDAQ’s decline was even greater than the KOSPI’s. The KOSDAQ opened at 685.30, down 13.19 points (1.89%) from the previous session, and as of now, it is down 2.99% at 677.60. This is due to foreign and institutional investors net selling about 25.8 billion KRW and 9.1 billion KRW, respectively. Individuals are net buying about 39.1 billion KRW, helping to curb the widening losses.
Among all stocks, only 97 are rising. Among the large-cap stocks, only EcoPro BM is up 1.24% from the previous session. Leading gaming stocks such as Pearl Abyss (-6.87%) and Kakao Games (-4.92%) are showing steep declines.
By sector, along with the gaming sector, the entertainment sector’s decline is prominent. SM Entertainment fell 6.91%, YG Entertainment 6.63%, and JYP Ent. 6.46%.
Seosang Young, a researcher at Mirae Asset Securities, said, "The factors behind the decline are not new but were already known and largely reflected in the market, so the possibility of further widening losses is limited," adding, "We expect limited fluctuations while waiting for the earnings season."
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