Foreign and Institutional Net Selling Breaks KOSPI 2700 Level... KOSDAQ Also Declines

[Image source=Yonhap News]

[Asia Economy Reporter Myung-Hwan Lee] The KOSPI and KOSDAQ indices both closed lower on the 21st. The prolonged uncertainty surrounding the Ukraine situation and hawkish remarks from U.S. Federal Reserve (Fed) officials are believed to have intensified foreign selling pressure.

On the 21st, the KOSPI closed at 2,686.05, down 0.77% (20.97 points) from the previous trading day. The KOSPI opened at 2,717.81, up 0.40% (10.79 points) from the previous day, showing a flat trend in the early session before turning downward. The index, which had fallen below the 2,700 level, retreated to the low 2,680s around 2:50 p.m. and closed slightly higher thereafter. Looking at trading participants, individual investors were the sole net buyers with purchases worth 797.8 billion KRW, while foreigners and institutions sold 487.3 billion KRW and 331.2 billion KRW, respectively.

Most of the large-cap stocks declined. Samsung Electronics, the KOSPI's leading stock, fell 1.13%, along with SK Hynix (-1.61%), NAVER (-1.60%), Samsung Electronics Preferred (-0.31%), Kakao (-3.23%), and Hyundai Motor (-1.46%). LG Energy Solution rose 1.05% to close at 386,000 KRW, reclaiming the second spot in market capitalization from SK Hynix, and Samsung Biologics also increased by 0.12%. Samsung SDI traded unchanged at 504,000 KRW from the previous day.

By sector, chemicals (0.88%), paper & wood (0.80%), and non-metallic minerals (0.55%) rose, while medical precision (-3.91%), banking (-3.41%), and electric & gas utilities (-3.16%) declined.

Park Kwang-nam, a researcher at Mirae Asset Securities, commented, "The secondary battery sector showed strength reflecting expectations of solid earnings from major companies. In the U.S. stock market, electric vehicle-related stocks such as Tesla and Rivian have been strong, and the recent negative factors like cost increases and production disruptions in European electric vehicles, which had caused industry concerns, are now considered to have been priced in."

The KOSDAQ index closed at 918.40, down 0.49% (4.56 points). The KOSDAQ opened at 926.86, up 0.42% (3.90 points), but soon turned downward. It fluctuated within a narrow range before declining toward the end of the session. By trading participants, individuals and institutions bought 59.3 billion KRW and 11.2 billion KRW respectively, while foreigners were net sellers of 65.3 billion KRW.

Among the top KOSDAQ market cap stocks, most declined except for EcoPro BM (0.06%) and L&F (1.34%). Kakao Games dropped 3.58%, along with Celltrion Healthcare (-3.16%), Pearl Abyss (-1.50%), Celltrion Pharm (-2.86%), HLB (-0.30%), Wemade (-2.45%), and Chunbo (-0.06%).

By sector, food & tobacco (2.73%), transportation (1.84%), and textiles & apparel (0.99%) rose, while other services (-1.95%), pharmaceuticals (-1.68%), and distribution (-1.35%) declined.