Foreigners Continue Net Selling... KOSPI and KOSDAQ Fall Over 1% in Morning Session

[Asia Economy Reporter Minji Lee] The KOSPI and KOSDAQ indices continue to decline by over 1%. It is analyzed that the scale of foreign selling is increasing amid growing caution over the pace of interest rate hikes.

As of 11 a.m. on the 21st, the KOSPI stood at 2,412.62, down 1.3% (31.86 points) from the previous trading day. The index started the day with a slight rise of 0.06% compared to the previous day but quickly turned downward, widening the decline due to net selling by foreigners. Looking at investor trends, individuals and institutions bought stocks worth 172.1 billion KRW and 1.8 billion KRW respectively, while foreigners alone sold stocks worth 176.2 billion KRW.

Last week, hawkish remarks by Federal Reserve (Fed) officials lowered expectations for a slowdown in the pace of rate hikes, dampening investor sentiment. Hwang Su-wook, a researcher at Meritz Securities, said, "The Fed, which aims for price stability, likely found premature pivot expectations uncomfortable," adding, "As seen in leading economic indicators and regional Fed manufacturing indices, the burden on the real economy due to high interest rates continues to be confirmed, and even looking at the US stock market, downside risks to stock prices based on fundamentals could increase."

By sector, food and beverages rose the most at 0.32%. With the Qatar World Cup opening on the 20th, related beneficiary stocks such as meat processing company Maniker (3.6%) and liquor companies HiteJinro (2%) and Lotte Chilsung (0.3%) showed upward trends.

Among the top market capitalization stocks, Samsung Electronics (-1.13%), LG Energy Solution (-3.18%), SK Hynix (-2.38%), LG Chem (-2.27%), Samsung SDI (-1.43%), Hyundai Motor (-1.47%), NAVER (-1.08%), and Kia (-1.52%) declined, while Samsung Biologics (0.68%) was the only gainer.

The KOSDAQ index stood at 720.76, down 1.52% (11.16 points) from the previous trading day. The KOSDAQ also started the day with a rise of about 0.15% but soon turned downward.

In the KOSDAQ market, foreigners and institutions sold stocks worth 37.9 billion KRW and 15.1 billion KRW respectively, exerting downward pressure on the index. Individuals alone bought stocks worth 54.1 billion KRW. Looking at investor trends, individuals are increasing their net buying in the market alone. Individuals purchased stocks worth 156.8 billion KRW, while foreigners and institutions sold stocks worth 64.5 billion KRW and 77.1 billion KRW respectively.

Among the top market capitalization stocks, Ecopro BM (-3.02%), Celltrion Healthcare (-1.37%), L&F (-1.96%), HLB (-0.41%), Kakao Games (-0.69%), Ecopro (-0.56%), Celltrion Pharm (-2.32%), Lino Industrial (-0.48%), and Chunbo (-1.28%) declined, while Pearl Abyss (1.39%) rose.