KOSPI Retreats to 2660 Level Amid Foreign and Institutional Selling

KOSDAQ Falls 1.15%
Heightened Caution Ahead of ISM Manufacturing Index Release

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

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On the 3rd, the KOSPI closed at 2664.63, down 16.37 points (0.61%) from the previous trading day. The KOSPI started the day slightly higher at 2683.12, up 2.12 points (0.08%) from the previous day, but widened its losses and ultimately ended the session in a downtrend.

In the securities market, individual investors were net buyers with 512 billion KRW, while foreigners and institutions were net sellers with 290.9 billion KRW and 240.2 billion KRW, respectively.

Most of the top market capitalization stocks declined. Samsung Electronics closed at 72,500 KRW, down 2.55% from the previous day, and SK Hynix also fell 3.28%. Hyundai Motor (-3.46%) and Kia (-3.68%) both dropped more than 3%.

By sector, the electrical and electronics sector (-2.20%), transportation equipment (-1.71%), and manufacturing (-1.44%) showed weakness. Insurance (3.19%) and distribution (3.04%) sectors rose.

The KOSDAQ index closed at 760.37, down 8.84 points (1.15%) from the previous day.

Among the top market cap stocks, Alteogen (1.09%) and Classys (2.98%) rose. Ecopro BM, which had risen more than 7% the previous day, fell more than 4%, while Ecopro (-1.22%), HLB (-2.44%), and Enchem (-3.73%) declined.

Ji-won Kim, a researcher at KB Securities, analyzed, "Although momentum was limited due to the U.S. stock market holiday, buying continued mainly in financial, distribution, and telecommunications companies amid expectations for the Value-Up index announcement, leading both indices to rise early in the session. However, ahead of the U.S. ISM Manufacturing Purchasing Managers' Index (PMI) release on the night of the 3rd, caution intensified, resulting in a reversal to a decline at the close."

The ISM Manufacturing Index surveys purchasing managers at various companies to gauge the manufacturing sector's boom or recession. A reading above 50 indicates economic expansion, while below 50 indicates contraction. Last month, concerns about a recession grew as the ISM manufacturing employment index notably slowed.