'Effect of Short-Selling Ban' Lasts Only One Day... KOSPI and KOSDAQ Close Lower Together

On the 7th, the KOSPI index fell more than 2%, closing the session in the mid-2400s.

On that day, the KOSPI index closed at 2443.96, down 58.41 points (2.33%) from the previous session. Individual investors net bought 459.7 billion KRW, while institutions and foreigners net sold 393.5 billion KRW and 101.5 billion KRW, respectively.

Among the top market capitalization groups in the KOSPI market, stocks related to secondary batteries such as POSCO Holdings (-11.02%), POSCO Future M (-11.02%), LG Energy Solution (-10.23%), and Samsung SDI (-7.91%) experienced significant declines.

[Image source=Yonhap News]

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "Uncertainty in supply and demand due to the short-selling ban and anxiety in investor sentiment acted as negative factors," adding, "Selling pressure expanded mainly in sectors that had surged sharply compared to their fundamentals."

The KOSDAQ closed at 824.37, down 15.08 points (1.80%). Individuals net bought 465.9 billion KRW, while foreigners and institutions net sold 243.1 billion KRW and 221.1 billion KRW, respectively. A day after a buy-side program trading suspension (sidecar) was triggered due to a sharp rise the previous day, a sell-side sidecar was triggered in the opposite direction.

Among the top market capitalization groups in KOSDAQ, EcoPro BM, which hit the daily upper limit the previous day, closed down 4.85% at 284,500 KRW. On the other hand, EcoPro continued its upward trend, rising 3.74% to 859,000 KRW. Most stocks except EcoPro, such as L&F (-15.29%) and POSCO DX (-5.83%), declined.

Meanwhile, in the Seoul foreign exchange market, the KRW-USD exchange rate closed at 1,307.9 KRW, up 10.6 KRW from the previous session.