KOSPI and KOSDAQ Fall by Over 1%... Foreigners Switch to Selling KOSPI

Foreign and Institutional Dual Selling
Top 10 Market Cap Stocks in KOSPI and KOSDAQ All Decline

On the 17th, dealers are working in the dealing room of Hana Bank in Euljiro, Seoul, as the KOSPI index briefly fell below the 2400 level in early trading due to the impact of a sharp decline in global stock markets. The intraday break below 2400 on the KOSPI is the first in about 1 year and 7 months since November 5, 2020 (2370.85). Photo by Moon Honam munonam@

[Asia Economy Reporter Hwang Yoon-joo] The KOSPI and KOSDAQ started lower on the 29th. Foreign investors initially showed buying interest in the KOSPI right after the market opened but turned to selling, joining institutions in dragging the index down. However, it is notable that they are net buyers in the futures market.

As of 9:09 AM, the KOSPI was trading at 2,390.70, down 1.30% (31.39 points) from the previous day. The KOSPI opened at 2,387.10, down 1.44% (34.99 points) on the day.

Right after the opening, institutions alone were net sellers of 35.3 billion KRW, while individuals and foreign investors were net buyers of 30.9 billion KRW and 1.4 billion KRW, respectively. However, as time passed, the buying interest from foreign investors weakened.

As of 9:27 AM, foreign investors and institutions are selling 8.9 billion KRW and 72.2 billion KRW, respectively. However, foreign investors are buying 89.7 billion KRW in the futures market.

Looking at the top 10 stocks by market capitalization, all are declining. Samsung Electronics (-1.52%), LG Energy Solution (-2.56%), SK Hynix (-2.10%), Samsung Biologics (-0.98%), Naver (-2.97%), Samsung SDI (-1.03%), LG Chem (-2.81%), Hyundai Motor (-4.30%), Kia (-4.15%), Kakao (-2.37%) ? except for Samsung Biologics and Samsung SDI, all are falling faster than the index decline rate.

In particular, LG Energy Solution is seeing a larger drop following news that it will fully reconsider its plan to invest 1.7 trillion KRW in a battery factory in the United States. The stock price broke below 400,000 KRW, falling as low as 396,500 KRW during the session.

By sector, non-metallic minerals (-2.07%), medical precision (-2.08%), steel and metals (-1.96%), transportation equipment (-1.82%), services (-1.64%), and electrical and electronics (-1.50%) are declining. Meanwhile, only machinery (+0.59%), electric and gas utilities (+0.44%), and construction (+0.32%) are rising.

As of 9:19 AM, the KOSDAQ is at 757.49, down 1.56% (12.02 points) from the previous day. The KOSDAQ opened at 759.21, down 1.34% (10.30 points) on the day. The KOSDAQ appears to be widening its losses after the opening.

The decline in the KOSDAQ is largely influenced by supply and demand. Foreign investors and institutions are net sellers of 73.3 billion KRW and 25.5 billion KRW, respectively. Individuals alone are net buyers of 101.2 billion KRW, but it is insufficient to defend the index.

The top 10 KOSDAQ stocks by market capitalization are also all declining. L&F (-5.89%), Cheonbo (-4.68%), Kakao Games (-4.48%), and EcoPro BM (-3.91%) show notable declines.

Regarding sector trends, general electrical and electronics (-2.69%) continues to have the highest decline rate today as well. It is followed by IT H/W (-2.42%), paper/wood (-2.36%), telecommunications equipment (-2.23%), and digital content (-2.00%).