Samsung Electronics Drops 3.5% on Dec. 2
The KOSPI plunged nearly 2% on Dec. 2, as top large-cap stocks, led by Samsung Electronics, which fell more than 3% in market capitalization, showed weakness one after another. The excitement over the possibility of the U.S. Federal Reserve's rate adjustment the previous day was short-lived, and concerns over economic deterioration cooled investor sentiment again.
The KOSPI finished at 2,434.33 on Dec. 2, down 1.84 percent from the previous day. As a result, the KOSPI lost what it had gained for the three consecutive trading days until the previous day. Foreigners and institutional investors sold 410 billion won and 510 billion won, respectively, leading the stock market index to decline. Individual investors alone bought 910 billion won worth of stocks to prevent the KOSPI stock market tumbling, but it fell short. The KOSDAQ market closed at 732.95, down 1.03 percent, under pressure from foreign and institutional investors.
Large-cap stocks ranking high in the market cap standings fell at the same time. Of the total drop of -1.84 percent, those of stocks ranking first to fifth by market cap accounted for about 1 percent. In particular, foreign and institutional investors sold large amounts of stocks of the two top semiconductor companies -- Samsung Electronics (-3.51 percent) and SK Hynix (-3.31 percent).
Stock market analysts believe that risk appetite decreased amid investors’ growing concern that the economy may slow down significantly. The Institute for Supply Management (ISM)’s November manufacturing index fell below 50 for the first time since May 2020 by reaching 49 and raised anxiety about an economic contraction. The index serves as a leading indicator of the U.S. economy. In a situation where positive factors, such as the Fed’s dovish remarks and China’s easing of zero-corona policies, disappeared, a bearish factor of an economic recession that had put pressure on the stock market throughout this year has risen to the surface again, stock market analysts explain.
In the Seoul foreign exchange market, the won-dollar exchange rate rose by 0.2 won to finish at 1,299.9 won, closing below 1,300 won for two days in a row on Dec. 2.