KOSPI Hit by 'NVIDIA Shock', Closes at 2650 Level Amid Joint Selling by Institutions and Foreigners

Foreigners and Institutions Net Sell Over 200 Billion KRW
Most Semiconductor Stocks Decline... Hyundai Motor and SK Also Fall
KOSDAQ Entertainment Stocks Rally Together... Impact of 'Bottom Theory'

The KOSPI index closed lower due to simultaneous selling by institutions and foreigners.

[Image source=Yonhap News]

On the 11th, the KOSPI index closed at 2659.84, down 20.51 points (0.77%) from the previous trading day. The KOSPI index started at 2665.58, rebounded to a high of 2688 in the early session, and then hovered around the 2670 level in the morning. However, selling pressure intensified in the afternoon as sell orders emerged.

By investor type, foreigners sold 107 billion KRW, and institutions sold 112.3 billion KRW. On the other hand, individuals were the sole buyers, purchasing 185.1 billion KRW. On the 8th, when the index closed at a yearly high of 2680.35, foreigners and institutions were net buyers while individuals were net sellers. The situation reversed in just one trading day.

By sector, all sectors except services (1.50%), machinery (1.07%), and textiles & apparel (0.58%) declined. Among the top 25 stocks by market capitalization, only Naver (1.01%), Kakao (2.63%), LG (2.21%), Samsung Fire & Marine Insurance (1.94%), and KakaoBank (0.52%) closed higher. Meanwhile, semiconductor stocks, including Samsung Electronics (-1.23%) and SK Hynix (-3.08%), fell due to the U.S. Nvidia-led 'semiconductor shock.' Hyundai Motor (-3.75%), Samsung SDI (-2.93%), and SK (-2.79%) also saw declines close to 3%.

Research analysts Kang Jin-hyeok and Lee Jae-won of Shinhan Investment Corp. said, "Ahead of the March Federal Open Market Committee (FOMC) meeting on March 20, the February Consumer Price Index (CPI) release scheduled for March 12 could increase market volatility. Considering the downward shock the market experienced from the January CPI surprise, we expect the market to remain highly cautious this month as well."

The KOSDAQ index closed at 875.93, up 2.75 points (0.31%).

By investor type, foreigners sold 80.2 billion KRW, and institutions sold 93.9 billion KRW. Individuals purchased 184.5 billion KRW.

Among the 1,646 stocks traded, 771 closed higher, 804 closed lower, and 75 were unchanged. Among the top market cap stocks, Enchem (17.41%), Rino Industrial (12.53%), and Wemade (10.11%) posted double-digit gains. Entertainment stocks such as JYP Ent. (5.75%), CJ ENM (2.05%), SM Entertainment (3.69%), Studio Dragon (2.27%), and YG Entertainment (8.15%) also showed generally positive trends. This is interpreted as a positive influence on stock prices recently, supported by the securities industry's 'entertainment bottoming theory.'

On the day, the KRW-USD exchange rate closed at 1,310.3 KRW, down 9.5 KRW (0.76%) from the previous session.