The KOSPI opened lower on the 31st, giving up the 6,600 level. Hawkish remarks by Kevin Warsh, Chairman of the Federal Reserve System (Fed), triggered a decline in U.S. technology stocks, leading the domestic market to show weakness centered on the semiconductor sector.
At 9:06 a.m. today, the KOSPI index was calculated at 6,552.59, down 236.29 points (3.48%) from the previous trading day. Through the Korea Exchange and Next Market, retail investors made net purchases worth 366.2 billion won, while foreign investors sold net 196.5 billion won and institutional investors sold net 181.3 billion won.
Among the top market capitalization stocks, Samsung Electronics fell by over 6%, Samsung Electronics, SK Hynix, and SK Square declined by over 4%, and Samsung Life Insurance, Samsung Biologics, and Hyundai Motor weakened by over 2%. LG Energy Solution and Hanwha Aerospace showed roughly flat performance, while KB Financial Group remained strongly flat.
All sectors turned negative. KOSPI machinery equipment, construction, and medical precision dropped by over 4%; IT services, metals, manufacturing, securities, telecommunications, general services, and electric utilities fell by over 3%; pharmaceuticals, transportation equipment, insurance, finance, logistics warehouses, entertainment/culture, and retail declined by over 2%; real estate, paper/wood, chemicals, non-ferrous metals, food/tobacco, and textiles/apparel recorded declines of over 1%.
On the 28th (local time), the Dow Jones Industrial Average fell 0.02%, the S&P 500 Index dropped 0.25%, and the NASDAQ Composite Index declined 0.52% compared to the previous day. The Philadelphia Semiconductor Index fell 3.47%.
Han Ji-young, a researcher at Kiwoom Securities, stated before market open that "Chairman Warsh's remarks at the Jackson Hole meeting were heavily focused on the Federal Reserve's dual mandate of price stability and full employment in principle, so it is appropriate to continue placing high importance on inflation and employment indicators as before."
The researcher added, "Major economic indicators are still pending this week, and the impact of August U.S. non-farm payrolls is expected to be higher than other indicators." He noted that "South Korea's August exports scheduled for the 1st next month are an event directly linked to the direction of the domestic market, including semiconductor stocks, and within the stock market, Broadcom's earnings announcement early on the 3rd is the main event."
At this time, the KOSDAQ index stands at 805.81, down 32.60 points (3.89%) from the previous trading day. Retail investors made net purchases worth 82.1 billion won, foreign investors sold net 72.0 billion won, and institutional investors sold net 10.4 billion won.
All top 10 market capitalization stocks are currently declining. AlteoGen and Juseong Engineering fell by over 6%, iOTechnics and Wonik IPS dropped by over 5%, RAINBOW Robotics and Reno Industrial declined by over 4%, Pharmaron, EcoPro, and HLB fell by over 3%, and EcoPro BM weakened by over 2%.
By sector, KOSDAQ general services dropped by over 5%; machinery equipment and electrical/electronics fell by over 4%; manufacturing, non-ferrous metals, medical precision, pharmaceuticals, finance, chemicals, IT services, and metals declined by over 3%; transportation equipment, retail, construction, and entertainment/culture slipped by over 2%; other manufacturing, paper/wood, and telecommunications entered a decline of over 1%. Food/tobacco, textiles/apparel, logistics warehouses, and publishing/media showed roughly flat performance.
The won/dollar exchange rate was 1,377.5 won, down 2.0 won from the previous day based on the Seoul foreign exchange market.
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