The KOSPI index is extending its intraday losses, pressured by weakness in the Shanghai stock market and simultaneous selling by institutional and foreign investors.
As of 10:44 a.m. on the 16th, the KOSPI index is trading at 2541.28, down 29.59 points (1.15%) from the previous day.
Following a decline in the New York stock market the previous day due to concerns over China and a hawkish atmosphere, the KOSPI index opened down 0.8% and has been widening its losses in the early session amid heavy selling by institutions and foreigners. At this time, institutions and foreigners are net sellers of 132 billion KRW and 91.7 billion KRW, respectively. Meanwhile, individual investors are net buyers of 215.8 billion KRW.
The Shanghai Composite Index also started the day weak. It began trading at 3164.70, down 11.47 points (0.36%) from the previous day, and continues to show weakness. Despite a surprise short-term policy rate cut by Chinese authorities, the Chinese stock market is declining due to poor real economy indicators and default risks related to Biguiyuan (Biguoyuan).
According to Chinese-language media and other foreign reports, the default crisis triggered by Biguiyuan, a major Chinese real estate developer, is expected to have a much greater ripple effect than the default crisis experienced by Evergrande Group at the end of 2021.
Biguiyuan has suspended trading on 11 types of corporate bonds worth 15.72 billion yuan (approximately 2.87 trillion KRW) since yesterday. Among these, the earliest maturity is a private bond maturing on September 2, and depending on the bond type, maturities are scheduled throughout September, October 19, the end of this year, and early next year.
As a result, all sectors in the KOSPI index are showing declines. The textile and apparel sector is down 4.61%, medical precision -3.23%, food and beverage -2.54%, distribution -2.44%, chemicals -2.29%, pharmaceuticals -2.2%, electric and gas utilities -1.63%, and non-metallic minerals -1.44%, among others.
Most of the top market capitalization stocks are also weak. Samsung Electronics is down 0.74%, and LG Energy Solution has fallen 1.66%. Samsung Biologics -1.76%, POSCO Holdings -1.91%, LG Chem -0.84%, Samsung SDI -0.82%, Hyundai Motor -1.06% are also showing weakness. On the other hand, SK Hynix is showing strength with gains in the 2% range.
The KOSDAQ index is also continuing its weakness. At the same time, the KOSDAQ index is trading at 891.71, down 9.97 points (1.11%) from the previous day. Foreigners are net sellers of 104.4 billion KRW, while institutions and individuals are net buyers of 1 billion KRW and 112 billion KRW, respectively.
Most of the top market capitalization stocks are also weak. Ecopro BM is down 1.26%, Ecopro 0.09%, Celltrion Healthcare -6.1%, POSCO DX -2.51%, JYP Ent. -3.11%, Pearl Abyss -0.89%, Celltrion Pharm -4.43%, among others. Meanwhile, L&F is up 0.23%, and HLB is up 0.49%, showing slight gains.
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