28th KOSPI and KOSDAQ new low price 1,060 stocks
Opinions also said that “there is already a low, so further decline is limited.”
The KOSPI index is falling sharply. While the 2200 line has collapsed, some brokerage firms predict that it may be pushed down to the 1920 level.
As of 3:16 pm on the 29th, the KOSPI is trading at 2172.11, up slightly (0.13%) from the previous day. The KOSPI was also pushed below the 2,150 level during the day for the first time in about two years and two months the previous day.
As the KOSPI plummeted, the top stocks by market capitalization fell. The previous day, 1,060 stocks recorded new lows, including the KOSPI (365 stocks) and the KOSDAQ (609 stocks). Semiconductor giant Samsung Electronics slipped to 53,500 won during the day, recording a 52-week low, and SK Hynix, the second largest in market cap, also broke new lows for the second day. ICT giant Kakao also posted a 52-week low for the ninth consecutive day.
Fears of a global economic downturn took a toll on the KOSPI, pulling the index down. The possibility of further declines increased as the number of counter trades increased as the stock price plunged. As of the 26th, the number of accounts lacking collateral at the five domestic brokerages stood at 15,779, three times the number at the beginning of this month (5336). Counter-trading refers to a brokerage company forcibly selling stocks when an investor who borrows money from a brokerage company to purchase stocks fails to repay the receivables within the agreed period. Typically, individual investors who are faced with a lack of collateral are placed in a cross-border trade if they do not replenish their money within the deadline.
The conditions surrounding the stock market were mixed with bad news. These include the burden of raising corporate funds due to rising interest rates, concerns over an economic slowdown, and counter-trading volumes that have become burdensome with the stock market crash.
As a result, brokerage firms are also offering a gloomy outlook for the KOSPI. Eugene Investment & Securities predicted that the KOSPI could move up to the 1920 level. Heo Jae-hwan, a researcher at Eugene Investment & Securities, said, “The current stock price still reflects the prospect that companies will perform better next year than this year. It could be pushed back to 1920-2020.”
Han Jae-hyuk, a researcher at Hana Securities, said, “As of the closing price on the 28th, the KOSPI plummeted 11% from the high of 2449.54 in September, and there is a high possibility of a decline for the time being.
However, some analysts say that the decline will not be long. It is from the perspective that counter-trading volumes have already appeared and the KOSPI is at its bottom. Kim Young-hwan, a researcher at NH Investment & Securities, said, “Additional counter trades may appear, but a significant portion of counter trades have already occurred. The level of counter-trading that appeared in the beginning of the month is slightly lower than in June,” he explained. He continued, “Even if the KOSPI falls in the short term, it will not last long.”
By Hong Da-won, staff reporter [email protected]