[Special Report] Short Selling and US Stagflation Concerns... Top Market Cap Stocks 'Tumble'

Top market capitalization stocks on the KOSPI are declining. This is interpreted as being influenced by the resumption of short selling and concerns over stagflation (economic slowdown amid rising prices) in the U.S.

As of 10:45 a.m. on the 31st, Samsung Electronics was trading at 58,600 won, down 1,600 won (2.66%) from the previous trading day. LG Energy Solution also fell 5.90%, and POSCO Holdings dropped 4.28%. SK Hynix, Hyundai Motor, and Kia each declined more than 3%. In addition, most of the top market cap stocks, including Celltrion, NAVER, and Hyundai Mobis, fell more than 2%.

On the 28th (local time), the Dow Jones Industrial Average closed at 41,583.90, down 715.80 points (1.69%) from the previous session. The S&P 500 index fell 112.37 points (1.97%) to 5,580.94, and the tech-heavy Nasdaq index dropped 481.04 points (2.70%) to 17,322.99.

The New York stock market declined amid concerns over the realization of stagflation in the U.S. Real personal consumption expenditures in the U.S. increased by only 0.1% month-on-month, expanding worries about slowing consumption. Additionally, the University of Michigan's final consumer sentiment index recorded 57.0, below the preliminary estimate of 57.9.

Meanwhile, short selling has resumed domestically. The securities industry had previously anticipated that short selling resumption could increase volatility in the short term. Lee Kyung-min, a researcher at Daishin Securities, advised, "It is necessary to be cautious about short-term volatility in the early stages of short selling resumption. Considering valuation levels and other quantitative indicators, avoid risky stocks and use fundamentally strong oversold stocks as opportunities."