KOSDAQ Returns to Two Months Ago... Falls Below 1000 Point Mark

Foreign Selling Pressure Intensifies... Individual Investor Sentiment Also Weakens

[Asia Economy Reporter Minwoo Lee] The KOSDAQ index has fallen to the 990s for the first time in two months.

As of 1:55 PM on the 19th, the KOSDAQ recorded 998.56, down 2.21% from the previous day. After dropping to 993.21 at 1:19 AM, it rebounded to the 1000s but is falling again. This is the first time in over two months since June 17 that the KOSDAQ has fallen below 1000 during trading hours.

It appears that the index was dragged down as the net selling amount by foreign investors gradually increased. Around 10:30 AM, the net selling amount by foreigners fluctuated between 30 billion and 50 billion KRW but began to rise sharply afterward. As of 1:55 PM, it had increased to 151.4 billion KRW. This is the first time since the 26th of last month that foreigners have net sold more than 150 billion KRW in the KOSDAQ market.

Along with this, institutional investors also net sold 101.6 billion KRW. Only individual investors net bought 265.3 billion KRW.

Park Gwangnam, a researcher at Mirae Asset Securities, explained, "As individual investors' sentiment shrinks, the power to defend the index against foreign selling pressure appears weakened. While the KOSPI has been declining centered on Samsung Electronics and SK Hynix, the KOSDAQ is falling mainly in IT sectors related to these, and the drop in the Taiwan stock market today is a similar context."