Domestic Stock Market Loses Momentum... Both Foreigners and Institutions 'Sell'

KOSDAQ Index Falls Below 700 Again

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] The KOSPI and KOSDAQ indices started with gains of over 1%, but lost momentum after about an hour. The KOSDAQ index turned negative, showing a sharp decline.

As of 10:25 a.m. on the 5th, the KOSPI stood at 2219.79, up 0.47% (10.41 points) from the previous trading day. The KOSPI opened the session up 1.8%, but the gains narrowed after about an hour.

The early rise in the domestic market was driven by a weaker dollar and falling U.S. Treasury yields, which boosted the U.S. stock market. However, the KOSPI's gains were limited due to increased net selling by foreign and institutional investors. Looking at investor trends, individual investors bought stocks worth 386.8 billion KRW alone. Institutions increased their net selling to 356 billion KRW, and foreigners also sold stocks worth 47.7 billion KRW.

By sector, the electrical and electronics industry showed a strong rise of 2.07%. Samsung Electronics traded at 56,300 KRW, up 1.99%, and SK Hynix also rose 3.13%. This was influenced by the previous day’s gains in global semiconductor companies. Financial stocks also rose 0.62%. Credit Suisse, a global bank that had plunged due to concerns over financial soundness, rose 12%, impacting the market. KB Financial rose 2.9%, and Shinhan Financial Group increased by 1.6%.

Among other large-cap stocks, LG Energy Solution (3.26%), LG Chem (0.72%), and Samsung SDI (2.16%) rose, while Hyundai Motor (-3.34%), Kia (-4.26%), NAVER (-4.53%), and Kakao (-1.61%) declined.

At this time, the KOSDAQ index stood at 692.36, down 0.64% (4.43 points) from the previous trading day. The KOSDAQ opened the session at 706.76, up 1.43% (9.97 points), showing a strong rise of over 1%, but soon turned downward.

Investor trends show increased selling by foreigners. Foreigners sold stocks worth 150.5 billion KRW, and institutions alone net sold stocks worth 31.8 billion KRW. Individuals bought stocks worth 184.9 billion KRW alone.

Among the large-cap stocks, Celltrion Healthcare (0.44%), EcoPro BM (0.87%), and L&F (0.17%) rose, while HLB (-0.89%), Pearl Abyss (-5.2%), Celltrion Pharm (-0.62%), JYPEnt. (-3%), and Rino Industrial (-0.3%) declined.