Conflicting Trades by Institutions... KOSPI 'Declines' KOSDAQ 'Rises'

[Image source=Yonhap News]

[Asia Economy Reporter Jang Hyowon] The KOSPI index fell under selling pressure from institutional investors. In contrast, the KOSDAQ index rose, driven by net buying from institutions.

On the 3rd, the KOSPI index closed at 2218.68, down 6.99 points (0.31%) from the previous day.

That day, the KOSPI index started higher, buoyed by strong European markets the day before. However, during the session, selling pressure from institutions and foreigners suppressed the gains. Although foreigners turned to net buying, institutions increased their selling, resulting in a decline in the KOSPI by the close.

On the day, foreigners and individuals were net buyers of the KOSPI index by 40.6 billion KRW and 273.2 billion KRW respectively, while institutions were net sellers of 347.5 billion KRW. Program trading saw net selling of 48.1 billion KRW in arbitrage trades and net buying of 97.6 billion KRW in non-arbitrage trades.

By sector, more sectors declined than rose. Non-metallic minerals fell 2.34%, pharmaceuticals -2.02%, food and beverages -1.46%, insurance -1.12%, machinery -0.88%, and medical precision -0.86% all showed weakness. On the other hand, telecommunications rose 0.91%, paper and wood 0.58%, electric and gas utilities 0.55%, and securities 0.38% were strong.

Among the top market capitalization stocks, performances were mixed. Samsung Electronics fell 0.18%, closing near flat, while LG Energy Solution dropped 1.23%, Samsung Biologics -2.9%, SK Hynix -0.13%, and LG Chem -0.5% were weak. Conversely, Samsung SDI rose 0.5%, Hyundai Motor 1.27%, Kia 1.46%, and Kakao 1.14% closed higher.

Unlike the KOSPI, the KOSDAQ index ended the day slightly higher. The KOSDAQ index closed at 674.95, up 3.44 points (0.51%) from the previous day.

Starting slightly higher, the KOSDAQ index initially turned lower due to selling by foreigners and institutions early in the session, but institutions returned to net buying, driving the rise. Institutions recorded net buying of 14.2 billion KRW, while foreigners and individuals were net sellers of 18.2 billion KRW and 3.4 billion KRW respectively.

Most of the top market capitalization stocks were strong. Kakao Games rose 2.83%, HLB 2.51%, EcoPro 3.64%, Pearl Abyss 1.36%, Studio Dragon 1.79%, and JYP Entertainment 1.19% all gained. Meanwhile, EcoPro BM fell 0.21%, Celltrion Healthcare -1.57%, and L&F -0.59% closed weaker.

Meanwhile, the won/dollar exchange rate closed at 1271.0 won, down 1.6 won from the previous day.