Concerns Over Interest Rate Hikes Expand... KOSPI Plummets Over 1% in Early Trading

The U.S. stock market closed lower due to concerns over the Federal Reserve's (Fed) hawkish stance, impacting the domestic stock market as well.

As of 9:19 a.m. on the 7th, the KOSPI was at 2,530.26, down 1.02% (26.02 points) from the previous trading day. The KOSPI opened at 2,547.41, down 0.35% (8.88 points) from the previous day, and has been widening its losses. Looking at investor trends, foreigners and institutions sold stocks worth 98.8 billion KRW and 70.1 billion KRW respectively, while institutions alone bought stocks worth 164 billion KRW.

Among the top market capitalization stocks, Samsung Electronics fell 1.3%. On this day, Samsung Electronics announced in its Q2 earnings report that its operating profit was 600 billion KRW, a 96% decrease compared to the same period last year. This is the lowest level recorded in 14 years. SK Hynix (-1.14%), Samsung Biologics (-0.4%), Samsung SDI (-0.28%), LG Chem (-0.3%), Hyundai Motor (-1.2%), and Kia (-1.9%) declined, while LG Energy Solution (1.24%) and POSCO Holdings (0.5%) rose.

Seo Sang-young, head of the Media Content Division at Mirae Asset Securities, said, "The release of profit-taking selling triggered by favorable employment data and service sector indices in the U.S. stock market has acted as a burden on the domestic stock market," adding, "The increased likelihood of two interest rate hikes could act as a factor dampening investor sentiment."

At the same time, the index was at 864.83, down 0.65% (5.70 points) from the previous trading day. The KOSDAQ index opened at 868.08, down 0.28% (2.45 points) from the previous day, fluctuated between losses and gains, and is currently widening its losses. Looking at investor trends, foreigners and institutions sold stocks worth 15 billion KRW and 31.4 billion KRW respectively, while individuals alone bought stocks worth 49.6 billion KRW.

Among the top market capitalization stocks, EcoPro BM (0.9%), EcoPro (2.02%), L&F (0.63%), and HLB (0.49%) rose, while Celltrion Healthcare (-1.11%), JYP Ent. (-0.1%), Pearl Abyss (-0.5%), Celltrion Pharm (-2.3%), and Caregen (-0.4%) declined.