[Asia Economy Reporter Kwon Jae-hee] On the 27th, the KOSPI index briefly fell below the 2400 level during the session due to concerns over prolonged tightening amid US inflationary pressures, but managed to hold the 2400 level before the market closed.
The KOSPI index closed down 0.87% (20.97 points) at 2402.64. The index opened at 2405.42, down 0.75% (18.19 points) from the previous trading day, widened its losses during the session, briefly dropping below 2400, but held the 2400 level before the close. This was the first time the index fell below 2400 since January 20, about a month ago.
Sell-offs by foreigners and institutions pulled the index down. Foreigners and institutions sold stocks worth 324.9 billion KRW and 420.1 billion KRW, respectively. In contrast, individual investors were the sole net buyers, purchasing stocks worth 675.6 billion KRW.
In the Seoul foreign exchange market, the won-dollar exchange rate closed at 1323.0 won, up 18.2 won from the previous day's closing price. This is the first time the won-dollar rate closed above the 1320 level since December 7 last year (1321.7 won).
The KOSPI's weakness and the sharp rise in the won-dollar exchange rate on this day are attributed to the US inflation data released on the 24th, which showed an increased inflation rate, raising concerns that the US tightening policy will be prolonged.
Lee Kyung-min, a researcher at Daishin Securities, explained, "Inflation and tightening concerns reignited due to the US January Personal Consumption Expenditures (PCE) price shock, causing risk appetite to retreat. The sharp rise in the won-dollar exchange rate triggered foreign profit-taking sales, increasing downward pressure on the stock market."
Among the top 10 market capitalization stocks, all closed lower except Kia (0.93%). Samsung Electronics (-1.31%), LG Energy Solution (-0.59%), SK Hynix (-1.10%), Samsung Biologics (-1.66%), Samsung SDI (-0.29%), LG Chem (-1.79%), Samsung Electronics Preferred (-1.65%), and Hyundai Motor (-0.35%) all declined. NAVER closed flat.
By sector, all sectors closed lower except non-metallic minerals (1.15%), insurance (1.15%), and steel & metals (0.16%).
The KOSDAQ closed up 0.18% (1.42 points) at 780.30 compared to the previous trading day. The KOSDAQ opened down 0.50% (3.87 points) at 775.01 but reversed to an upward trend.
By investor type, individuals and foreigners were net buyers of 82.5 billion KRW and 6.4 billion KRW, respectively, while institutions were net sellers of 88.1 billion KRW.
The top 10 KOSDAQ stocks by market capitalization closed mixed. The biggest gainer was EcoPro, which rose 15.70%. It was followed by Osstem Implant (6.13%), EcoPro BM (4.71%), and L&F (2.78%). Mainly, secondary battery-related stocks showed strength. Meanwhile, Celltrion Healthcare (-1.27%), Kakao Games (-1.37%), HLB (-3.58%), SM (-0.58%), and Pearl Abyss (-1.22%) declined.
By sector, finance recorded the largest gain at 6.95%, followed by general electric & electronics (2.83%), machinery equipment (1.76%), medical precision instruments (1.73%), IT components (0.87%), and software (0.67%). Conversely, digital content (-2.73%), broadcasting services (-1.81%), computer services (-1.71%), internet (-1.67%), and other manufacturing (-1.61%) sectors declined.
Meanwhile, the trading value on the Korea Exchange and KOSDAQ markets for the day was 6.5514 trillion KRW and 10.3896 trillion KRW, respectively.
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