KOSPI Plummets Nearly 1%... Falls Below 2400

KOSDAQ Also Closes Down Over 2%... Strong Selling Pressure from Foreigners

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The KOSPI fell below the 2300 level as foreign investors' selling pressure intensified. The KOSDAQ also closed down more than 2%, ending in the 860 range.

On the 21st, the KOSPI closed at 2389.39, down 23.01 points (0.95%) from the previous session. It opened at 2412.44, up 0.04 percentage points from the previous trading day, but continued its downward trend. Around 2:20 PM, the 2400 level was broken, and it dropped further to 2379.38, widening the decline.

The selling pressure from foreign investors was seen as a key factor. On that day, foreigners were net sellers of 77.4 billion KRW. In contrast, individuals and institutions were net buyers of 46.2 billion KRW and 33.1 billion KRW, respectively.

Most sectors declined. The paper and wood sector had the largest drop at 2.88%. This was followed by non-metallic minerals (-2.40%), pharmaceuticals (-2.32%), and chemicals (-2.24%). On the other hand, transportation equipment (0.90%) and electric and gas utilities (0.73%) rose.

Most of the top 10 market capitalization stocks also fell. LG Chem had the largest decline, dropping 5.8% from the previous session. This was followed by Celltrion (-4.4%), Samsung Biologics (-2.3%), Kakao (-2.2%), NAVER (-2.0%), and Samsung Electronics (-0.1%). Meanwhile, Hyundai Motor (2.2%) and SK Hynix (0.9%) rose.

The KOSDAQ also closed lower. It ended the day at 866.99, down 21.89 points (2.49%) from the previous session. It opened at 890.36, up 0.17% from the previous day, but soon turned downward. Around 2:36 PM, it fell to 859.40, dipping below the 860 level.

Strong selling pressure was seen from individuals and institutions, who were net sellers of 154 billion KRW and 255.1 billion KRW, respectively. Conversely, foreigners were net buyers of 445 billion KRW.

Except for the transportation equipment and parts sector, which rose 1.24% from the previous session, all sectors declined. The telecommunications equipment sector had the largest drop at 4.07%, followed by digital content (-3.60%), textiles and apparel (-3.56%), and paper and wood (-3.36%).

Almost all of the top 10 market capitalization stocks fell. Kakao Games widened its decline to 6.1%. This was followed by Alteogen (-5.8%), KMW (-5.4%), Genexine (-4.5%), and Celltrion Healthcare (-4.2%). Only HLB and EcoPro BM rose, by 3.6% and 2.7%, respectively.