Concerns Over Economic Recession Spread... KOSPI Falls by Around 0.9%

Net Selling Accompanied by Foreigners and Institutions

[Asia Economy Reporter Minji Lee] As concerns over the economic slowdown are reflected in the index and foreign investors' net selling increases, the index is widening its decline.

At 9:12 a.m. on the 2nd, the KOSPI stood at 2456.82, down 0.93% (23.02 points) from the previous trading day. The index opened at 2471.50, down 0.34% (8.34 points) from the previous day, and is extending its losses. Looking at investor trends, individual investors alone bought stocks worth 133.9 billion KRW, while foreigners and institutions sold stocks worth 108 billion KRW and 37.7 billion KRW, respectively.

The KOSPI is continuing its downward trend reflecting concerns over the economic slowdown. On the 1st (local time), the U.S. stock market showed mixed results as it reflected both worries about the economic slowdown and expectations for interest rate cuts. The Nasdaq, sensitive to interest rates, rose 0.13%, but the Dow Jones and S&P 500 fell after the U.S. ISM Manufacturing Purchasing Managers Index (PMI) hit 49.0, the lowest in two and a half years. Han Ji-young, a researcher at Kiwoom Securities, said, “Although the market rose on the previous day due to positive news from Chairman Jerome Powell’s remarks, factors such as the manufacturing PMI slowdown are being reflected, resulting in limited stock price movement.” She added, “Until now, 'economic indicator bad news was interpreted as good news for Fed policy,' but we are entering a phase where this formula will change.”

Among the top market capitalization stocks, Samsung Electronics (-1.28%), LG Energy Solution (-0.51%), Samsung Biologics (-0.57%), SK Hynix (-1.65%), Samsung SDI (-0.28%), and Kia (-0.87%) declined, while LG Chem (0.69%) and NAVER (0.53%) rose.

At the same time, the KOSDAQ index stood at 736.20, down 0.59% (4.40 points) from the previous trading day. The index opened at 740.13, down 0.06% (0.47 points) from the previous day, and is continuing its weakness. Looking at investor trends, individual investors alone bought stocks worth 63 billion KRW, while foreigners and institutions sold stocks worth 48.3 billion KRW and 13.8 billion KRW, respectively.

Among the top market capitalization stocks, EcoPro BM (-1.56%), Celltrion Healthcare (-0.91%), L&F (-0.36%), HLB (-1.05%), EcoPro (-1.77%), Lino Industrial (-2.55%), Celltrion Pharm (-0.89%), and Chunbo (-0.24%) declined, while Kakao Games (0.46%) and Pearl Abyss (1%) rose.