Rebound hopes dashed as the KOSPI plunges 3.52% again; retail investors’ sighs grow deeper [fn Market Close]

[Financial News] The KOSPI and KOSDAQ both plunged more than 3%, disappointing investors once again after they had hoped for a recovery. Individual investors were net buyers of more than 380 billion won, and foreign investors also turned from net sellers to net buyers during the session, but this was not enough to overcome institutional selling and weakness in large-cap stocks.
On the 22nd, the KOSPI closed at 5,533.77, down 201.89 points (3.52%) from the previous trading day. It gave back the previous day’s 182.92-point (3.29%) gain in full and fell even further.
The index opened lower at 5,670.11, then climbed as high as 5,740.28 intraday, briefly turning positive. But it failed to hold its gains and fell to 5,485.98, widening its loss to 4.35%. It recovered the 5,500 level late in the session, but not enough to revive hopes for a rebound.
The decline spread across the market. On the Korea Exchange Main Board, 709 stocks fell, while only 174 rose. More than four times as many stocks fell as rose. The large-cap index dropped 3.71%, a steeper decline than those of mid-caps (-1.72%) and small-caps (-1.20%).
Leading semiconductor stocks also gave back a substantial portion of the previous day’s gains. Samsung Electronics closed at 214,500 won, down 4.03% from the previous trading day. SK Hynix closed at 1,223,000 won, down 5.49%. Although they had risen 5.91% and 5.31%, respectively, the previous day, their sharp declines a day later added to the burden on investors who had bought in betting on a rebound.
Institutional selling stood out in investor flows. On the Korea Exchange Main Board, institutions were net sellers of shares worth 462.051 billion won. Individual investors absorbed the selling, making net purchases of 380.249 billion won. Foreign investors also shifted from net selling during the session to net purchases of 59.178 billion won by the close. 
The KOSDAQ closed at 764.10, down 28.66 points (3.62%) from the previous trading day. Its decline was more than twice the previous day’s 10.79-point gain. The index opened at 789.84 and slid as low as 761.56 intraday, before paring only some of its losses.
With rebounds and sharp drops recurring, a recovery in market confidence is also being delayed. Even after the KOSPI plunged 7.57% on the 15th, it continued to swing sharply, and its closing level on the 22nd fell to 41.04% below its 52-week high. The KOSDAQ was also down 37.85% from its 52-week high.
Lee Eun-taek, a researcher at KB Securities, said, “What is needed now is data or an event that can ease inflationary pressure,” adding, “Conversely, if evidence continues to mount that inflation is persistent, the market’s difficulties will not be easy to resolve.”

[email protected] Choi Doo-seon Reporter