[Asia Economy Reporter Lee Seon-ae] The Kospi index is widening its decline in the afternoon session. It has broken below the 3120 level during the day, falling to around 3110. On the futures and options simultaneous expiration day, foreign and institutional investors are net sellers, and the negative impact is also attributed to the overnight decline in the New York stock market.
As of 1:19 PM on the 9th, the Kospi is trading at 3119.96, down 1.36% from the previous day. The Kospi opened at 3146.64, down 16.35 points (0.52%) from the previous trading day, and is continuing to fall. The Kosdaq is down 0.60%, trading at 1030.99.
Only individual investors are net buyers. They are purchasing approximately 652.4 billion KRW and 233.4 billion KRW in the Kospi and Kosdaq markets, respectively. Foreigners and institutions are both net sellers. Foreigners sold about 404.4 billion KRW and 77.0 billion KRW in the two markets, respectively. Institutions are also net sellers, with about 271.7 billion KRW and 148.3 billion KRW sold in the Kospi and Kosdaq markets, respectively.
The weak sectors in the Kospi are services (-2.43%), steel and metals (-1.79%), and transportation and warehousing (-1.77%), while the strong sector is telecommunications (+1.40%).
Hi Investment & Securities Research Center stated, "Concerns about the US economic slowdown and the ongoing fourth wave of COVID-19 in Korea are burdens on the stock market," adding, "Attention should be paid to supply and demand trends on the futures and options simultaneous expiration day."
Han Ji-young, a researcher at Kiwoom Securities, said, "With ongoing concerns about the US economic slowdown, the European Central Bank (ECB) September monetary policy meeting, and the domestic futures and options simultaneous expiration day, the market is expected to enter a phase of increased volatility," emphasizing, "Since cyclical sectors faced downward pressure due to economic slowdown concerns in the US market on the previous trading day, it is necessary to pay attention to increased price volatility in these sectors in the domestic market as well."
The New York stock market closed lower across the board overnight. On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell by 20.0 points (-0.06%), the S&P 500 index dropped by 0.13%, and the Nasdaq index declined by 0.57%. The Dow and S&P 500 fell for the third consecutive trading day, while the Nasdaq turned negative after five trading days. The US Federal Reserve, through the Beige Book, assessed that "inflationary pressures in the US economy are increasing" and that "the recovery has slowed to a moderate pace due to the spread of the Delta variant."
Kim Il-hyuk, a researcher at KB Securities, said, "The impact of the Delta variant spread is expected to be limited to the third quarter, and the sentiment is that the shock from the Delta variant will not continue into the fourth quarter," adding, "If the impact of the Delta variant in the third quarter was underestimated, earnings forecasts may have been overestimated, but investors looking beyond the third quarter are expected to limit the index's decline."
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