Foreigners and Institutions Sell, KOSPI Down 1.5%... "Concerns Over Prolonged Tightening"

KOSPI Starts Higher Then Turns Downward
KOSDAQ Also Closes Down 1.81%
SM Surpasses Tender Offer Price

[Asia Economy Reporter Lee Jung-yoon] The KOSPI index fell more than 1.5% due to selling pressure from foreigners and institutions.

On the 15th, the KOSPI index closed at 2,427.90, down 37.74 points (1.53%) from the previous trading day. The index opened at 2,473.09, up 7.45 points (0.30%). However, as selling pressure from foreigners and institutions intensified, the index turned downward, dropping to 2,424.16 during the session, widening the decline. Individuals net bought about 1.0456 trillion KRW, but foreigners and institutions sold about 368.5 billion KRW and 707.2 billion KRW respectively.

[Image source=Yonhap News]

Among the top market capitalization stocks, most declined except LG Energy Solution (0.38%). Naver (NAVER) fell 3.79%, recording the largest drop. This was followed by Kakao (-2.15%), SK Hynix (-1.82%), Samsung SDI (-1.76%), Samsung Electronics (-1.58%), Samsung Biologics (-1.37%), Kia (-1.22%), Hyundai Motor (-0.58%), and LG Chem (-0.30%).

All sectors except steel & metals (3.38%) and insurance (0.03%) showed declines. Electric & gas utilities (-3.36%), finance (-2.54%), machinery (-2.31%), services (-2.30%), construction (-2.18%), textiles & apparel (-1.95%), and securities (-1.86%) fell in that order.

Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "The higher-than-expected US Consumer Price Index (CPI) announcement reflected concerns that tightening policies could be prolonged. Profit-taking from the previous day's rise and increased selling pressure from foreigners and institutions in the afternoon intensified downward pressure on the index." He added, "The won-dollar exchange rate also rose nearly 14 won during the session, reducing risk appetite."

On the day, the won-dollar exchange rate rose 12.8 won to 1,282.2 won. It even rose to 1,284.8 won during the session, surpassing the yearly high of 1,280.9 won recorded on January 4.

The US January Consumer Price Index (CPI) inflation rate exceeded market expectations. It rose 6.4% year-on-year, slightly down from the 6.5% increase in the previous month. Although it continued a seven-month consecutive slowdown trend, it exceeded the market forecast of 6.2%. Additionally, it rose 0.5% month-on-month, a larger increase than December's 0.1%.

The KOSDAQ index closed at 765.46, down 14.12 points (1.81%) from the previous trading day, marking a decline after three trading days. It opened at 782.55, up 2.97 points (0.38%), but turned downward and widened the decline. Individuals bought about 386.7 billion KRW, but foreigners and institutions net sold about 106.1 billion KRW and 254.3 billion KRW respectively.

Among the top market capitalization stocks, EcoPro rose more than 8%, showing the largest gain. SM rose 4.97%, closing at 122,600 KRW, surpassing HYBE's tender offer price of 120,000 KRW. EcoPro BM also rose 0.43%. On the other hand, Pearl Abyss fell 6.98%, Kakao Games 4.44%, followed by Celltrion Healthcare (-4.08%), HLB (-3.99%), L&F (-2.85%), and Osstem Implant (-0.05%). Rino Industries remained flat.