Kospi dips below 2,800 for the first time in 13 months on Fed concerns

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South Korean stocks crashed further Monday, retreating to below 2,800 for the first time in 13 months amid concerns about tightening Federal Reserve monetary policy and instability in Ukraine, while the fast omicron spread and plunging cryptocurrency prices undermine investor appetite for risk.

The benchmark Kospi lost 42.29 points or 1.49 percent to close at 2,792,00, with Kosdaq plunging 2.91 percent.

After opening Monday 0.37 percent lower at 2,823.76, Korea’s main bourse Kospi lost further to 2,791.51 by 9:49 a.m., breaking below the key 2,800 level for the first time since Dec. 29, 2020. Individual investors sold net 195.9 billion won ($164 million) and foreigners 148.4 billion won in the Kospi, while institutions net bought 349.4 billion in the morning session.

The Korean stock indexes followed a bearish finish on Wall Street ahead of the U.S. Federal Reserve’s meeting this week. While the Fed has already warned of monetary tightening, market has been predicting the U.S. central bank would raise increase rates four times this year.

Big tech stocks performed sluggish to add more pressure. Global streaming giant Netflix has lost nearly 22 percent after releasing weaker-than-expected earnings report for the fourth quarter.

Meanwhile, investors are fretful about escalating tensions between Russia and Ukraine. The U.S. government already ordered families of embassy staff to leave Ukraine over fears for war, according to media sources.

In Seoul, all top cap stocks traded lower on Monday. Samsung Electronics lost 0.66 percent, Naver 1.35 percent, and Hyundai Motor 1,5 percent. Almost all sectors remained bearish, with banking sector retreating 2.69 percent, fiber/clothing 3.47 percent, steel 2.72 percent, and chemicals 3.06 percent.

On the Kosdaq market, which started the day 0.82 percent lower, foreigners were net seller of 48.7 billion won, while individuals net bought 50.7 billion won and institutions 13.4 billion won.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]