Foreigners and Institutions 'Sell' Push KOSPI Down 1% at Close... KOSDAQ Drops 1.5%

"Entering a Breather Phase"

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Foreigners and institutions recorded net selling, causing the KOSPI index to close down nearly 1%.

On the 13th, the KOSPI index closed at 2,456.15, down 23.67 points (0.95%) from the previous trading day. The index opened at 2,460.85, down 18.97 points (0.76%). It then fell to 2,452.83 before narrowing the losses. Individuals were the sole net buyers with approximately 422.2 billion KRW, while foreigners and institutions sold about 161.2 billion KRW and 283.1 billion KRW respectively. Foreigners recorded net selling for the 15th consecutive trading day.

Among the top market capitalization stocks, most showed declines except for SK Hynix (0.40%). LG Energy Solution (-1.93%), Samsung SDI (-1.68%), Samsung Electronics (-1.31%), POSCO Holdings (-1.16%), Samsung Biologics (-0.96%), Naver (NAVER) (-0.93%), Hyundai Motor (-0.48%), Kia (-0.36%), and LG Chem (-0.19%) all fell in that order.

By sector, machinery (-2.63%), transportation and warehousing (-2.25%), construction (-1.39%), and pharmaceuticals (-1.25%) declined, while insurance (0.62%), food and beverage (0.34%), electric and gas utilities (0.20%), textiles and apparel (0.09%), and paper and wood (0.08%) rose.

The KOSDAQ index closed at 822.78, down 12.71 points (1.52%) from the previous session. Individuals bought about 380.4 billion KRW, while foreigners and institutions sold 272.3 billion KRW and 101.3 billion KRW respectively.

Among the top market capitalization stocks, EcoPro (-4.58%), EcoPro BM (-3.15%), L&F (-2.89%), Alteogen (-2.69%), SM (-1.27%), JYP Ent. (-0.70%), and Pearl Abyss (-0.11%) declined. POSCO DX (0.88%), HLB (0.66%), and Celltrion Healthcare (0.63%) rose.

Lee Kyung-min, a researcher at Daishin Securities, explained, "The rebound in U.S. Treasury yields and the strength of the dollar index worsened market sentiment again. Following the recent sharp rebound in the index, the market entered a consolidation phase, leading to short-term profit-taking sales."

On the day, the USD/KRW exchange rate rose 11.5 won from the previous trading day to 1,350.0 won. In the financial market, U.S. Treasury yield rebounds, U.S. September Consumer Price Index (CPI) exceeding market expectations, and discussions on strengthening sanctions against Iran, identified as backing Palestinian Hamas, led to simultaneous weakness in stocks, bonds, and the Korean won.

Additionally, the Chinese September Consumer Price Index released during the session showed a slowdown in the rise, rekindling concerns about a Chinese economic recession. Furthermore, the Israeli military issued a full evacuation order to residents of Gaza City, the central city of the Palestinian Gaza Strip, and announced a large-scale operation, escalating geopolitical tensions.