Partial Resumption of Short Selling... KOSDAQ Closes Down 2%
Institutions Switch from Net Buying to Net Selling Early in the Session
Bio, IT Components, and Securities Stocks See Larger Declines
Impact of Decline in Taiwan Market with High IT Weight Also Reflected
[Asia Economy Reporter Minji Lee] On the 3rd, when short selling partially resumed, foreign investors and institutions released sell orders, pulling the index down. On that day, the KOSPI closed down by 0.6%, and the KOSDAQ index recorded a decline of over 2%.
On the 3rd, the KOSPI closed at 3,127.20, down 0.66% (20.66 points) from the previous trading day. The KOSPI opened at 3,149.05, up 0.04% (1.19 points) from the previous day, showing a rise of about 0.8%, but from around 11 a.m., as institutional net buying decreased, it showed a downward trend. Looking at investor trends, individuals alone bought stocks worth 586 billion KRW, while foreigners and institutions sold stocks worth 443.1 billion KRW and 136.3 billion KRW, respectively.
By sector, the largest declines were seen in pharmaceuticals (-4.33%), transportation and warehousing (-3.02%), non-metallic minerals (-2.91%), and securities (-2.66%). Among the pharmaceutical sector, Boryung Pharmaceutical (-12.5%), Shinpung Pharmaceutical (-12.1%), Chong Kun Dang Bio (-11%), Shinpung Pharmaceutical Preferred (-10.8%), and GeneOne Life Science (-9.7%) fell.
Among the top market capitalization stocks, Samsung Electronics (0.25%), SK Hynix (2.73%), NAVER (0.97%), Kakao (0.88%), and Hyundai Motor (2.83%) rose. On the other hand, second battery sector stocks such as LG Chem (-2.68%) and Samsung SDI (-2.29%), as well as bio-related stocks like Samsung Biologics (-3.80%) and Celltrion (-6.20%), declined.
The KOSDAQ index closed at 961.81, down 2.2% (21.64 points) from the previous trading day. The KOSDAQ opened at 982.97, down 0.05% (0.48 points), and showed a slight rise, but as institutional and foreign net selling continued, the decline widened. Individuals alone bought stocks worth 199.3 billion KRW, while foreigners and institutions sold stocks worth 166.8 billion KRW and 42.3 billion KRW, respectively.
In the KOSDAQ market, sell orders were mainly released in IT components and bio sectors. By sector, IT components (-3.75%), distribution (-3.67%), pharmaceuticals (-3.47%), and telecommunications equipment (-3.46%) showed the largest declines. Among IT components, L&F (-6.7%), Hankook Computer (-6.2%), KH Vatec (-5.9%), and Dawonsys (-3.8%) showed notable declines.
Most of the top market capitalization stocks fell. Celltrion Healthcare (-5.97%), Celltrion Pharm (-5.04%), Kakao Games (-4.61%), EcoPro BM (-3.98%), and Pearl Abyss (-2.48%) declined, while CJ ENM alone rose 0.56%.
Seosangyoung, a researcher at Mirae Asset Securities, explained, “The resumption of short selling led to sell-offs mainly in the bio and second battery sectors, limiting the rise. As panel manufacturer AU Optronics in the Taiwan stock market plunged and major IT sectors such as TSMC showed weakness, the domestic stock market also turned downward.”
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