Foreigners' 'Palja' leads KOSPI down 0.6%... dipping below 2400 mark

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The KOSPI index opened lower amid strong selling pressure from foreigners. However, after falling to the 2390 level, the decline narrowed and the index recovered to the 2400 level.

As of 9:20 a.m. on the 6th, the KOSPI index was recorded at 2405.08, down 14.24 points (0.59%) from the previous trading day. The index started at 2397.70, down 21.62 points (0.89%), but the decline later eased. Individuals and institutions net bought stocks worth 75.3 billion KRW and 22.1 billion KRW respectively, helping to curb the index's fall. Foreigners net sold stocks worth 95.2 billion KRW.

Among the top market capitalization stocks, only Samsung Biologics (0.24%) showed gains. Naver (NAVER) fell the most, down 2.35%. It was followed by LG Chem (-1.58%), Samsung SDI (-1.15%), Kakao (-1.03%), Hyundai Motor (-0.91%), SK Hynix (-0.86%), and Samsung Electronics (-0.83%).

By sector, steel & metals (-2.25%), chemicals (-1.37%), electric & gas utilities (-1.02%), paper & wood (-0.98%), services (-0.95%), and machinery (-0.89%) declined in order. Pharmaceuticals (0.51%) and telecommunications (0.30%) showed strength.

At the same time, the KOSDAQ index was also down, recording 724.77, down 8.55 points (1.17%) from the previous day. The index opened at 726.32, down 7.00 points (0.95%), and the decline widened due to simultaneous selling by foreigners and institutions. Individuals net bought stocks worth 68.2 billion KRW, while foreigners and institutions sold stocks worth 40.6 billion KRW and 22.9 billion KRW respectively.

Among the top market capitalization stocks, Celltrion Healthcare remained flat. Pearl Abyss fell the most, down 2.73%. It was followed by Lino Industrial (-2.28%), L&F (-2.27%), Chunbo (-1.84%), EcoPro BM (-1.50%), and EcoPro (-1.48%).

On the 5th (local time), the U.S. stock market closed lower amid concerns that tightening measures could intensify. The Dow Jones Industrial Average fell 482.78 points (1.40%) to 33,947.10, the large-cap S&P 500 index dropped 72.86 points (1.79%) to 3,998.84, and the tech-heavy Nasdaq index closed down 221.56 points (1.93%) at 11,239.94.

Han Ji-young, a researcher at Kiwoom Securities, explained, "On this day, technical selling pressure, the sharp decline in the U.S. stock market, and the rise in the won-dollar exchange rate are expected to act as burdens." She added, "Since stock prices have surged sharply in a short period, it is appropriate to prepare for the possibility of selling pressure due to profit-taking." The won-dollar exchange rate started trading at 1,304.2 won, up 11.6 won on the day.