KOSPI Weak in Early Trading... Strong Selling Pressure from Foreigners and Institutions

KOSDAQ Maintains Slight Upward Trend

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[Asia Economy Reporter Minwoo Lee] As institutional and foreign investors poured out sell orders early in the session, the KOSPI showed a slightly weak trend at the beginning of trading.

On the 3rd, the KOSPI opened at 2251.65, up 0.10% (2.28 points) from the previous close, but turned to a downward trend early on. As of 9:20 a.m., it was down 0.24% from the previous trading day at 2243.88.

The selling pressure from institutions and foreigners is believed to have influenced this. At the same time in the KOSPI market, institutions sold a net 94.1 billion KRW, and foreigners sold a net 14 billion KRW. On the other hand, individuals bought a net 109.2 billion KRW.

Many sectors were declining. The transportation equipment sector had the largest drop at 1.7%. This was followed by distribution (-1.2%), machinery (-1.0%), and transportation and warehousing (-0.8%). Meanwhile, non-metallic minerals (1.3%), chemicals (0.9%), and food and beverages (0.5%) rose.

Most of the top 10 market capitalization stocks were in decline. Celltrion fell 2.0%, showing the largest drop. This was followed by Hyundai Motor (-1.1%), SK Hynix (-1.0%), and Samsung Electronics (-0.8%). On the other hand, LG Chem rose 5.1% from early in the session. Kakao (2.3%), NAVER (1.0%), and Samsung SDI (0.5%) also increased.

On the same day, the KOSDAQ opened at 820.43, up 0.63% (5.11 points) from the previous close, and maintained a slight upward trend early in the session. As of 9:20 a.m., it recorded 817.87, up 0.32% from the previous close.

In the KOSDAQ market, individuals bought a net 36.6 billion KRW, while foreigners and institutions sold a net 25.8 billion KRW and 6.5 billion KRW, respectively.

Most sectors showed gains. The information devices sector had the largest increase at 3.0%. This was followed by paper and wood (1.4%), non-metallic (1.2%), digital content (1.2%), and construction (1.1%). Meanwhile, distribution (-1.42%) and broadcasting services (-1.11%) declined.

The top 10 market capitalization stocks showed a mixed pattern of rises and falls. The biggest gainer was Seegene, which rose 3.6%. This was followed by EcoPro BM (2.3%), Genexine (2.1%), and Alteogen (2.0%). On the other hand, Celltrion Healthcare (-2.3%), Celltrion Pharm (-2.2%), CJ ENM (-1.9%), and HLB (-1.6%) declined.

Researcher Euntaek Lee of KB Securities explained, "In the first week, there are many economic indicator releases such as the ISM Manufacturing Index, Caixin Manufacturing Purchasing Managers' Index (PMI), and U.S. employment, which are generally expected to be close to forecasts," adding, "Although the number of new COVID-19 cases in the U.S. is on a declining trend, so economic-related negative factors are unlikely to be prolonged, political issues such as China's social network service (SNS) 'TikTok' and unemployment benefit payments will have a greater impact."