KOSPI Drops Further on Foreign and Institutional Selling... Won-Dollar Exchange Rate Starts at 1300.5 Won

KOSDAQ Starts Up but Turns Down
Won-Dollar Exchange Rate Rises by 1.5 Won

On the 17th, amid the impact of a sharp global stock market decline, the KOSPI index fell below the 2400 level briefly in early trading. Dealers are working in the Hana Bank dealing room in Euljiro, Seoul. 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 started lower on the 30th. The KOSDAQ opened higher but soon turned downward. Foreigners and institutions are showing selling pressure in both markets. The won-dollar exchange rate surpassing 1300 in the foreign exchange market is also a burden, dampening risk asset investment sentiment.

As of 9:16 AM, the KOSPI is trading at 2356.43, down 0.91% (21.56 points) from the previous day. The KOSPI opened at 2368.57, down 0.40% (9.42 points) on the day.

Unlike the previous session, foreigners are selling more aggressively in the KOSPI market. Foreigners and institutions are net selling 142.1 billion KRW and 47.4 billion KRW, respectively. Meanwhile, individuals are the sole net buyers with 190.7 billion KRW. However, foreigners are buying 51 billion KRW in the futures market.

[Image source=Yonhap News]

The surge in foreign selling appears to be influenced by the exchange rate. The won-dollar exchange rate started at 1300.5, up 1.5 won. This is interpreted as an expansion of risk-averse sentiment.

Among the top 10 market capitalization stocks, Samsung SDI (-3.86%) and Naver (-3.65%) show notable declines. In contrast, only Samsung Biologics (+0.37%), Hyundai Motor (+1.42%), LG Chem (+0.94%), and Kia (+0.65%) are rising.

By sector, most sectors are falling, with only transportation equipment (+1.24%), medical precision (+1.03%), construction (+1.13%), and machinery (+0.96%) showing gains.

As of 9:25 AM, the KOSDAQ is at 758.37, down 0.52% (3.98 points) from the previous day. The KOSDAQ opened at 762.45, up 0.01% (0.10 points), but turned downward shortly after opening.

Supply and demand also showed limitations. Foreigners and institutions are selling 80.6 billion KRW and 19.5 billion KRW, respectively. Individuals alone are buying 101.1 billion KRW, but it appears insufficient to defend the index.

The top 10 market capitalization stocks show mixed trends. Continuing from yesterday, LN F (-2.33%) and Ecopro BM (-1.81%) show notable declines, with Cheonbo (-2.60%) having the largest drop. On the other hand, Studio Dragon (+4.47%), HLB (+2.64%), Celltrion Pharm (+2.62%), and Celltrion Healthcare (+2.53%) are on the rise.

By sector, food & beverage/tobacco (-2.17%), IT components (-1.65%), digital content (-1.60%), and general electric & electronics (-1.50%) are declining in order.