Net Selling by Foreigners and Institutions, Individual Investors Continue Net Buying Alone
Impact of Concerns over US Tech Stocks Earnings and Downgrade of China's Economic Growth Rate
[Asia Economy Reporter Minji Lee] The KOSPI and KOSDAQ indices are showing a decline of over 1% due to net selling by foreigners and institutions.
As of 1:57 PM on the 24th, the KOSPI stood at 2,617.93, down 1.11% (29.45 points) from the previous trading day. The index opened at 2,638.94, down 0.32% (8.44 points) from the previous day, and the decline has deepened amid net selling by foreigners and institutions.
Looking at investor trading trends, individual investors alone purchased stocks worth 442 billion KRW. Foreigners and institutions sold stocks worth 252 billion KRW and 202 billion KRW, respectively.
There had been many expectations that the stock market would rise as hopes for easing recession concerns expanded. However, concerns over earnings of major U.S. tech stocks have increased, and global investment banks (IBs) have downgraded China's economic growth rate, significantly dampening investor sentiment. UBS lowered China's economic growth rate for this year from 4.2% to 3%, and JP Morgan sharply revised the Q2 GDP growth rate from -1.5% to -5.4%.
Sangyoung Seo, a researcher at Mirae Asset Securities, analyzed, "Earnings concerns over Snap have increased selling pressure mainly in the SNS sector," and added, "The mention by George of the Kansas City Federal Reserve Bank that interest rates could surge again due to high inflation has weakened investor sentiment."
At this time, the top market capitalization stocks are all showing sharp declines. LG Energy Solution and LG Chem traded at the same price as the previous closing price, while Samsung Electronics (-1.91%), SK Hynix (-3.54%), NAVER (-3.24%), Samsung SDI (-3.93%), Hyundai Motor (-1.6%), and Kakao (-2.05%) continued their downward trend.
At the same time, the KOSDAQ index is pointing to 872.57, plunging 1.25% (11.02 points) from the previous trading day. The index opened at 881.55, down 0.23% (2.04 points) from the previous day, and continues to decline. Looking at investor trends, individual investors alone bought stocks worth 198.3 billion KRW, while foreigners and institutions sold stocks worth 97.8 billion KRW and 78.8 billion KRW, respectively.
The top market capitalization stocks are all in the red. Ecopro BM (-2.01%), L&F (-1.12%), Celltrion Healthcare (-0.68%), HLB (-0.52%), Kakao Games (-1.02%), Pearl Abyss (-0.98%), Celltrion Pharm (-0.76%), Chunbo (-1.75%), Wemade (-0.53%), and Rino Industries (-3.37%) are all increasing their losses.
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