Selling Pressure Ahead of FOMC... Foreigners and Institutions Sell Together, "Back Below 3000"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] The KOSPI index fell more than 1% due to selling by foreigners and institutions, dropping below the 3000 mark again. On the day before the U.S. Federal Open Market Committee (FOMC) regular meeting results, the market showed a cautious stance throughout the session, wary of possible mentions of inflation and tapering (asset purchase reduction).

On the 3rd, the KOSPI index closed at 2,975.71, down 37.78 points (1.25%) from the previous trading day. The index opened at 3,020.36, up 6.87 points (0.23%) from the previous day.

Selling pressure from foreigners and institutions acted as a supply-demand burden. Only individuals were net buyers in the KOSPI market, purchasing about 845 billion KRW, while foreigners and institutions were net sellers of 451.3 billion KRW and 552.6 billion KRW, respectively.

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "The Korean stock market declined as cautious sentiment increased ahead of the FOMC," adding, "Foreigners led the index decline by selling spot and futures in a single day."

Among the top market capitalization stocks, LG Chem experienced the largest drop, closing down more than 5%. Samsung Electronics, SK Hynix, Naver, and Kia all showed declines in the 1% range. Kakao Pay, which entered the KOSPI on the day, closed at 193,000 KRW, up more than 7% from the opening price. In contrast, Kakao Bank fell more than 7%, and Kakao also dropped over 2%.

Most sectors declined. Medical precision rose 2.67%, while pharmaceuticals and non-metallic minerals increased by 1.01% and 0.79%, respectively.

The remaining sectors all fell. Banks plunged 6%, and transportation equipment also dropped by over 2%. Textiles and apparel, chemicals, finance, services, machinery, electric and gas, construction, electrical and electronics, food and beverage, securities, manufacturing, and transportation equipment all closed down by about 1%.

The KOSDAQ index closed at 1,005.00, down 4.44 points (0.44%) from the previous session. The index opened at 1,011.20, up 1.76 points (0.17%) from the previous day.

In the KOSDAQ market, individuals and institutions were net sellers of 29.2 billion KRW and 9.4 billion KRW, respectively. Foreigners were net buyers with a 42.7 billion KRW advantage.

Among the top market capitalization stocks, CJ ENM and HL Biotech fell more than 5% and 3%, respectively. Pearl Abyss also dropped more than 1%. On the other hand, EcoPro BM rose more than 5%, and Kakao Games and Wemade showed gains in the 3% range.

Most sectors declined. Broadcasting services fell over 5%, telecommunications broadcasting services dropped over 4%, internet, entertainment culture, and telecommunications equipment declined by about 2%, information devices, metals, computer services, non-metallic minerals, semiconductors, and machinery and equipment fell by about 1%, and construction, transportation, software, food and beverage, distribution, manufacturing, and pharmaceuticals declined less than 1%.

In the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,181.6 KRW, up 7.2 KRW from the previous day.