KOSPI and KOSDAQ Both Plunge Nearly 2%... Exchange Rate Closes in 1300-Won Range

[Asia Economy Reporter Son Sun-hee] On the 22nd, the domestic stock market closed lower, dropping nearly 2%.

On that day, the KOSPI closed at 2,417.68, down 41.28 points (1.68%) from the previous session. It showed a decline of over 1% from the early trading hours and fell to as low as 2,416.16 during the session. This is analyzed as a ripple effect from the U.S. stock market, which also closed down over 2% overnight. Recently, various U.S. economic indicators showed stronger-than-expected performance, raising the possibility of additional tightening by the Federal Reserve (Fed), which sharply worsened investor sentiment.

Looking at trading trends by investor type, institutional investors sold 687.5 billion KRW in the securities market, and foreigners also net sold 244.1 billion KRW. Although individuals net bought 887.3 billion KRW, it was insufficient to prevent the index from falling.

By industry sector, the securities industry index fell the most, dropping 2.97% due to deteriorating investor sentiment. This was followed by medical precision (-2.86%), steel and metals (-2.52%), and construction (-2.20%). Except for insurance (0.49%), all sector indices remained in a downward trend.

All stocks listed in the top 10 by market capitalization on the securities market also fell without exception. Samsung Electronics closed at 61,100 KRW, down 1.61% from the previous day, LG Energy Solution closed at 508,000 KRW, down 2.31%, and LG Chem closed at 666,000 KRW, down 3.06%.

On the same day, the KOSDAQ index also closed at 778.51, down 14.91 points (1.88%) from the previous session. Foreigners net sold 306.5 billion KRW, and institutions net sold 207.7 billion KRW. Individuals net bought 524.5 billion KRW.

Among the top market capitalization groups on KOSDAQ, JYP Entertainment (JYP Ent.) was the only one to show an upward trend (4.11%), while all others declined. In particular, HLB (-7.76%) and L&F (-6.19%) experienced large drops. EcoPro BM, the leading stock on KOSDAQ, closed at 160,500 KRW, down 0.19%.

Meanwhile, on the same day in the Seoul foreign exchange market, the won/dollar exchange rate closed at 1,304.9 won, up 9.0 won from the previous day. This is the first time in about two months that the closing price has recorded in the 1,300 won range since December 19 last year (1,302.9 won).