SVB Followed by CS... KOSPI and KOSDAQ Both Decline
Individual Buying Amid Foreign and Institutional Selling
Following the negative impact from the U.S. Silicon Valley Bank (SVB), risks arising from Credit Suisse (CS) have caused the KOSPI to drop by more than 1%.
As of 9:21 a.m. on the 16th, the KOSPI is at 2,352.92, down 26.80 points (1.13%) from the previous trading day. The index opened at 2,357.98, down 21.74 points (0.91%) from the previous day, and the decline is widening.
In the securities market, foreigners and institutions are net selling stocks worth 72.3 billion KRW and 38.2 billion KRW respectively, pulling the index down. Individual investors alone are net buying stocks worth 110.8 billion KRW.
Most of the top market capitalization stocks are falling. In particular, Celltrion (-1.98%), Kakao (-1.52%), and Naver (NAVER) (-1.27%) are experiencing significant declines.
By sector, indices are falling across the board except for non-metallic minerals (4.54%). Notably, insurance (-2.09%), textiles and apparel (-1.88%), and machinery (-1.73%) are seeing large drops. The domestic financial sector (-1.67%) is also declining due to the Credit Suisse risk.
At the same time, the KOSDAQ index is down 11.21 points (1.44%) from the previous session to 769.96. The index opened at 780.53, down 0.64 points (0.08%) from the previous day, then widened its losses and fell into the 770 range.
In the KOSDAQ market, individual investors are net buying stocks worth 255.6 billion KRW alone. Foreigners and institutions are net selling stocks worth 197.9 billion KRW and 49.7 billion KRW respectively, pushing the index down.
Among the top market capitalization stocks, EcoPro BM (2.80%) and L&F (1.30%) are rising, but most others such as HLB (-3.77%), Kakao Games (-3.27%), and Pearl Abyss (-3.02%) are falling.
In the Seoul foreign exchange market, the won-dollar exchange rate opened at 1,314.0 won, up 10.3 won from the previous day, and is trading in the mid-to-high 1,310 won range. Following the collapse of the U.S. Silicon Valley Bank (SVB), the Swiss investment bank Credit Suisse has also been engulfed in crisis rumors, causing renewed volatility in the financial markets.
Credit Suisse recently disclosed in its annual report that a ‘material weakness’ was found in the group’s financial accounting internal controls. Subsequently, the largest shareholder, the Saudi National Bank, announced it would not provide additional financial support, increasing concerns.
As a result, risk-averse sentiment has spread, leading major stock markets including New York’s overnight session to retreat, and international oil prices to plunge sharply. Swiss financial authorities have announced they will provide liquidity support if necessary, attempting to stabilize the situation.
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