Foreigners Sell Off, Samsung Electronics Drops 3%... KOSPI Plummets Over 1.8%

Individual Investor's Net Purchase of 907 Billion KRW Alone

The KOSPI opened at 2,471.50, down 8.34 points (0.34%) from the previous trading day, at the Hana Bank dealing room in Jung-gu, Seoul on the 2nd. On the same day, the won-dollar exchange rate started at 1,303.5 won, up 3.8 won from the previous trading day. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Minji Lee] The KOSPI closed down more than 1% as net selling by foreigners and institutions increased. The decline is attributed to the disappearance of the previous confidence in monetary policy and expectations for easing of China's zero-COVID policy, which had driven the index's rise.

On the 2nd, the KOSPI closed at 2,434.33, down 1.84% (45.51 points) from the previous trading day. The index opened at 2,471.50, down 0.34% (8.34 points) from the previous day, and widened its losses throughout the afternoon. The main sellers dragging the index down were foreigners and institutions. Foreigners sold stocks worth 403.2 billion KRW, and institutions sold 507.9 billion KRW worth of stocks. Meanwhile, individuals alone purchased stocks worth 907.9 billion KRW.

Lee Kyung-min, a researcher at Daishin Securities, said, "As the US ISM manufacturing index entered a contraction phase the previous day, concerns about economic deterioration emerged, causing risk appetite to retreat," adding, "Foreigners expanded their net selling mainly in semiconductors, increasing downward pressure on the KOSPI."

By sector, construction (-3.35%), insurance (-2.72%), electric and gas utilities (-2.55%), and electrical and electronics (-2.39%) declined. Preferred stocks of small and medium-sized construction companies, which had shown gains the previous day, plunged sharply: Kolon Global Preferred (-29.9%), Jinheung Enterprise 2 Preferred B (-16.3%), Daeyoung Construction Preferred (-12.1%), and Jinheung Enterprise Preferred B (-11.3%) all dropped significantly. As semiconductor companies' declines deepened, Samsung Electronics and SK Hynix closed down 3.51% and 3.31%, respectively.

Among major market capitalization stocks, LG Energy Solution (-0.17%), Samsung Biologics (-1.58%), LG Chem (-1.52%), Samsung SDI (-1.10%), Hyundai Motor (-1.46%), NAVER (-1.07%), and Kia (-3.06%) all fell.

The KOSDAQ index also closed down 1.03% (7.64 points) at 732.96 compared to the previous trading day. The index opened at 740.13, down 0.06% (0.47 points) from the previous day, but widened its losses to close down over 1%. In the KOSDAQ market as well, foreigners and institutions had large net selling volumes. Individuals alone bought stocks worth 274 billion KRW, while foreigners and institutions sold stocks worth 112.8 billion KRW and 154.5 billion KRW, respectively.

Among the top market capitalization stocks, all closed lower. EcoPro BM (-4.52%), Celltrion Healthcare (-2.44%), L&F (-1.34%), Kakao Games (-2.54%), HLB (-4.07%), EcoPro (-5.30%), Pearl Abyss (-0.22%), Lino Industrial (-1.53%), Celltrion Pharm (-3.11%), and Chunbo (-1.29%) all declined.