KOSPI widens early losses to over 2%... All major stocks in the red

Korea Economic Daily

Summary

The KOSPI Index showed an early decline of over 2%, with all major market cap stocks weakening.
Nuclear-related stocks in particular recorded sharp drops due to the ‘humiliating contract’ controversy and news of restrictions on bidding for new nuclear plant contracts.
The KOSDAQ Index also increased its losses to over 2%, with most major stocks in the red.

The KOSPI Index started the 20th on a downward trend, widening its loss to over 2%.

According to the Korea Exchange (KRX), as of 9:15 a.m., the KOSPI Index stood at 3,086.6, down 64.96 points (2.06%) from the previous day. The index opened at 3,121.52, down 30.04 points (0.95%), and extended its decline.

In the main stock market, only individuals showed a net sell of ₩224.5 billion. Foreigners and institutions had net buys of ₩73.3 billion and ₩148.5 billion, respectively.

Top market cap stocks like SK hynix (-4.18%), LG Energy Solution (-1.82%), and KB Financial Group (-1.92%) all flashed red.

Notably, nuclear-related stocks suffered a steep simultaneous decline. Korea Electric Power Corporation Engineering & Construction (KEPCO E&C) (-9.41%), Doosan Enerbility (-8.07%), and Woojin (-7.47%) were all sliding.

This comes as, following controversy over a ‘humiliating contract’ with U.S. Westinghouse Electric Company (WEC), it was reported that an agreement included a clause barring Korea Hydro & Nuclear Power (KHNP) from bidding for new nuclear plant contracts in North America, the European Union (EU), etc. That day, some media reported that Korea Hydro & Nuclear Power (KHNP) and Korea Electric Power Corporation (KEPCO) signed an agreement with WEC in January containing a clause restricting them from bidding for new nuclear plant contracts in North America, EU, United Kingdom, Ukraine, and Japan.

At the same time, the KOSDAQ Index was trading at 769.79, down 18.17 points (2.31%) from the previous day. The index opened at 778.63, down 9.33 points (1.18%), and further deepened its losses.

Institutions alone had a net sell of ₩28.8 billion, while individuals and foreigners posted net buys of ₩22.2 billion and ₩14.7 billion, respectively.

Alteogen (-2.11%), EcoPro BM (-1.25%), and EcoPro (-2.48%) were among the weak performers. ABL Bio fell nearly 4%. Except for Peptron (1.33%), all other top market cap stocks were in the red.

In the Seoul foreign exchange market, the won-dollar rate opened up by ₩2.6 at ₩1,393.5.

Shin Min-kyung, Hankyung.com reporter radio@hankyung.com