Foreigners and Institutions 'Selling'... KOSPI Early Session Declines to '3120 Level'

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 28th, the KOSPI index, which started lower, is showing weakness due to simultaneous selling by foreigners and institutions.

As of 9:20 AM on the 28th, the KOSPI index is trading at 3,128.70, down 0.13% from the previous trading day. The index opened at 3,133.40, down 0.24 points (0.01%) from the previous day.

The KOSDAQ index is also in a downtrend. At the same time, the KOSDAQ index is trading at 1,030.67, down 0.40%. The index opened at 1,034.04, down 0.78 points (0.08%) from the previous day.

In the early session, foreigners and institutions are showing a selling bias. Foreigners have switched to a slight net buying position of 1.4 billion KRW in the KOSPI market but are net selling 67 billion KRW in the KOSDAQ market. Institutions have a selling bias of 184.2 billion KRW and 48.1 billion KRW in the two markets, respectively.

Overnight, the New York stock market showed mixed trends as technology stocks fell amid U.S. Treasury yields rising to 1.5% during the session. On the 27th (Eastern Time), the Dow Jones Industrial Average closed at 34,869.37, up 71.37 points (0.21%) from the previous session at the New York Stock Exchange (NYSE).

The Standard & Poor's (S&P) 500 index closed at 4,443.11, down 12.37 points (0.28%) from the previous session, and the Nasdaq index closed at 14,969.97, down 77.73 points (0.52%).

The 10-year Treasury yield closed near 1.484%, up about 3 basis points (0.03%) from the previous session. Long-term Treasury yields are rising amid increased tightening concerns following the U.S. Federal Reserve's Federal Open Market Committee (FOMC) regular meeting.

Seo Sang-young, a researcher at Mirae Asset Securities, said, "International oil prices continue to rise, and positive factors for foreign demand, such as the U.S. Russell 2000 index rising 1.46%, are favorable," adding, "The Korean stock market is expected to start slightly lower but will likely maintain strength centered on semiconductor stocks, showing a solid performance."

Han Ji-young, a researcher at Kiwoom Securities, also said, "Considering the expectations for With Corona, and the stock price strength stemming from the improved semiconductor industry outlook by U.S. Micron in the previous trading day, the domestic economic normalization and semiconductor sector are expected to show positive stock price trends," adding, "Although the KOSPI's upper limit has been constrained recently, considering foreigners' net buying of large-cap stocks with improved earnings such as semiconductors and the easing of the won/dollar exchange rate surge, the possibility of being trapped in a long-term box range is judged to be low."