Shockwave from SVB Crisis... KOSPI Drops Over 1% Early Session Due to Net Selling by Foreigners and Others

The KOSPI and KOSDAQ indices are showing a decline of over 1% in the early trading session. This is due to a significant contraction in investment sentiment toward risk assets following the bankruptcy of the U.S. Silicon Valley Bank (SVB).

At 9:11 a.m. on the 14th, the KOSPI stood at 2376.69, down 1.41% (33.91 points) from the previous trading day. The KOSPI opened the day at 2390.36, down 0.84% (20.24 points) from the previous close, and has been extending its losses.

Looking at investor trends, foreigners and institutions sold stocks worth 55 billion KRW and 64 billion KRW respectively, pulling the index down. Individual investors were the only ones to net buy stocks, purchasing 117.5 billion KRW worth.

Among the top market capitalization stocks, all are showing declines. Samsung Electronics (-1%), LG Energy Solution (-0.53%), SK Hynix (-3.23%), Samsung Biologics (-0.64%), LG Chem (-1.67%), Samsung SDI (-2.3%), Hyundai Motor (-0.8%), NAVER (-1.43%), and Kia (-1.14%) are mostly down.

Han Ji-young, a researcher at Kiwoom Securities, said, “Due to the aftershocks of the SVB incident, strengthened preference for safe assets, and cautious sentiment ahead of the U.S. CPI in February, we expect a volatile market. Given the expanded short-term uncertainty, it is best to respond with a wait-and-see approach, and a strategy of phased buying focusing on large-cap stocks could be an alternative.”

At the same time, the KOSDAQ index stood at 780.93, down 1.01% (7.96 points) from the previous trading day. The KOSDAQ opened at 788.44, down 0.06% (0.45 points) from the previous close, and has been extending its losses. Investor trends show that individual investors bought stocks worth 111.1 billion KRW, while foreigners and institutions sold stocks worth 84.5 billion KRW and 27.2 billion KRW respectively.

Among the top market capitalization stocks, Ecopro BM (2.22%) and Ecopro (6.5%) are showing strong gains. Kakao Games (0.12%), Celltrion Pharm (1.95%), and SM (1.15%) are also on the rise. On the other hand, L&F (-1.48%), HLB (-0.28%), and Pearl Abyss (-0.95%) are all down.