KOSPI and KOSDAQ Fall for Second Consecutive Day Amid Early Session Net Selling by Individuals

[Asia Economy Reporter Eunmo Koo] The KOSPI and KOSDAQ indices have continued their decline for the second consecutive day, falling early in the session due to net selling by individual investors.

On the 22nd, the KOSPI opened at 2,388.14, down 1.25 points (0.05%) from the previous trading day. The KOSPI, which started lower, is maintaining a slight decline in the early session amid selling by institutional investors. As of 9:20 a.m., it was trading at 2,367.92, down 21.47 points (0.90%) from the previous day.

Overnight, major indices on the New York Stock Exchange (NYSE) fell sharply due to concerns over strengthened lockdowns in Europe amid the spread of COVID-19 and instability in bank stocks. On the 21st (local time), the Dow Jones Industrial Average closed at 27,147.70, down 509.72 points (1.84%) from the previous day. The Standard & Poor's (S&P) 500 index fell 38.41 points (1.16%) to 3,281.06, and the tech-heavy Nasdaq index closed down 14.48 points (0.13%) at 10,778.80.

Sangyoung Seo, a researcher at Kiwoom Securities, commented, “The decline in the U.S. stock market was driven by concerns over Nikola and global bank stocks, which had already been reflected in the Korean market yesterday, so the impact of the U.S. market’s weakness on the Korean market is expected to be limited.” He also noted, “Some large tech stocks that had been declining recently showed resilience due to a rebound buying trend, which is a positive sign.”

Looking at the current trading trends by investor type, individual investors are net sellers with 29.2 billion KRW. In contrast, foreign investors and institutional investors are net buyers with 34.3 billion KRW and 4.8 billion KRW, respectively.

By sector, steel and metals, and electrical and electronics are rising, while machinery, transportation and warehousing, and medical precision sectors are falling.

Among the top market capitalization stocks, LG Chem, Samsung Biologics, Samsung Electronics, and Samsung SDI are rising. On the other hand, Kia Motors, Hyundai Mobis, Hyundai Motor, and Samsung C&T are declining.

The KOSDAQ index is also continuing its decline for the second consecutive day. It opened at 867.72, up 0.73 points (0.08%) from the previous day, but soon turned downward and is widening its losses. As of 9:20 a.m., it was at 850.41, down 16.58 points (1.91%) from the previous day.

Regarding the current supply and demand situation, similar to the KOSPI, individual investors are leading the decline with net selling of 47.5 billion KRW. Meanwhile, foreign investors and institutional investors are net buyers with 49.9 billion KRW and 3.3 billion KRW, respectively.

By sector, paper and wood, and non-metal sectors are rising, while metals, information devices, and construction sectors are falling.

Among the top market capitalization stocks, Pearl Abyss and Alteogen are rising. Conversely, EcoPro BM, HLB, Kakao Games, Genexine, and CJ ENM are declining.