KOSPI Closes Below 3160 Due to Foreign and Institutional Selling... "Investor Sentiment Weakens Amid US Economic Slowdown Concerns"

[Image source=Yonhap News]

[Asia Economy Reporter Ji-hwan Park] On the 8th, the KOSPI closed below the '3160 level' due to concerns over a US economic slowdown and weakened investor sentiment ahead of the futures and options expiration day.

On that day, the KOSPI closed at 3,162.99, down 24.43 points (0.77%) from the previous trading day. The index started at 3,178.74, down 8.68 points (0.27%), and attempted a rebound in the morning but soon saw a widening decline. Researcher Seok-hwan Kim of Mirae Asset Securities analyzed, "Investor sentiment weakened due to concerns over the US economic slowdown and the upcoming futures and options expiration," adding, "In the afternoon, selling by foreigners and institutions increased, intensifying downward pressure on the index."

By investor type, individuals net bought 423.2 billion KRW. Foreigners and institutions net sold 283.5 billion KRW and 118.8 billion KRW, respectively.

Among the top 10 market capitalization stocks, Samsung Electronics (+0.26%), SK Hynix (+1.44%), Hyundai Motor (+0.24%), and Kia (+1.63%) rose. NAVER (-7.87%) and Kakao (-10.06%) fell sharply amid government regulatory moves. This is attributed to criticism of internet platforms raised at a forum hosted by ruling party lawmakers Gap-seok Song and Dong-joo Lee the previous day, and the financial authorities' interpretation that most sales activities introducing financial products on financial platforms should be regarded as brokerage rather than advertising. Researcher Kim Seok-hwan predicted, "With the political sphere discussing internet platform regulations and NAVER and Kakao plunging, strengthening regulations on market monopoly practices and halting fintech businesses seem inevitable." Samsung Biologics (-2.00%), LG Chem (-0.26%), Samsung SDI (-0.65%), and Celltrion (-2.15%) also closed lower.

The KOSDAQ closed at 1,037.22, down 17.21 points (1.63%) from the previous trading day. The index started at 1,053.46, down 0.97 points (0.09%).

By investor type, individuals net bought 331.9 billion KRW. Meanwhile, foreigners and institutions net sold 179.4 billion KRW and 144.8 billion KRW, respectively.

Among the top 10 market capitalization stocks, EcoPro BM (+2.72%) and L&F (+1.35%) rose. Celltrion Healthcare (-2.81%), HLB (-4.87%), Celltrion Pharm (-3.11%), Kakao Games (-3.76%), Pearl Abyss (-1.31%), Alteogen (-4.03%), and CJ ENM (-1.05%) declined.