Foreigners and Institutions Sell '1.3 Trillion'... KOSPI and KOSDAQ Fall "Strong Desire for Profit-Taking"

On the 26th, when the KOSPI index started lower, dealers were working in the Hana Bank dealing room in Euljiro, Seoul. Photo by Mun Honam munonam@

[Asia Economy Reporter Lee Seon-ae] On the 27th, the KOSPI and KOSDAQ indices, which started with gains, closed lower due to simultaneous selling pressure from foreigners and institutions.

According to the Korea Exchange, the KOSPI index closed at 3,122.56, down 17.75 points (-0.57%) from the previous trading day. While individuals were net buyers with 1.0676 trillion KRW, foreigners and institutions were net sellers of 629.8 billion KRW and 397.7 billion KRW, respectively.

Looking at sector performance, the steel and metal sector (+0.63%) showed notable gains, along with food and beverage (+0.26%). Conversely, sectors such as medical precision (-1.98%) and pharmaceuticals (-1.15%) declined. Additionally, construction (-0.91%), non-metallic minerals (-0.85%), and chemicals (-0.80%) sectors closed lower.

Among the top 20 market capitalization stocks, 7 stocks rose. Samsung Electronics closed down 1.27% at 85,600 KRW, while Samsung Biologics rose 5.86% to 849,000 KRW. NCSoft (+2.62%) and Celltrion (+2.02%) showed upward trends, whereas LG Chem (-2.83%), Hyundai Mobis (-2.81%), and Hyundai Motor (-2.39%) closed lower.

Out of all stocks, 291 rose, 574 declined, and 48 remained unchanged.

The KOSDAQ index closed at 985.92 points, down 8.08 points (-0.81%) from the previous day. Individuals were net buyers with 368.2 billion KRW, while foreigners and institutions were net sellers of 151.6 billion KRW and 191.6 billion KRW, respectively.

The agriculture, forestry, and fisheries sector (+1.43%) showed noticeable gains, along with entertainment and culture (+0.88%) and transportation (+0.23%). Meanwhile, mining (0.00%) and other services (-1.91%) closed relatively lower.

Among the top 20 market capitalization stocks, 7 showed gains. Pearl Abyss closed up 11.59% at 315,800 KRW, with Celltrion Pharm (+3.03%) and EcoPro BM (+2.02%) also rising, while Soulbrain (-4.63%) and Wonik IPS (-3.17%) closed lower.

Out of all stocks, 446 rose, 868 declined, and 83 remained unchanged.

Seo Sang-young, a researcher at Kiwoom Securities, analyzed, "As the Asian markets narrowed their gains due to profit-taking selling, the Korean stock market showed high volatility, turning down again. In particular, news that the Biden administration will aggressively respond to China's unfair trade practices, along with the People's Bank of China withdrawing liquidity for two consecutive days causing China's benchmark interest rate to surge by 24 basis points, is presumed to have impacted the market negatively. This issue appears to have strengthened the desire for profit-taking following the recent rise."