Foreigners and Institutions Sell Together
Despite Surprise Rate Cut by BOK Previous Day
Concerns Grow Over Domestic Economic Slowdown
On the 29th, the KOSPI started lower, giving up the 2500 level.
According to the Korea Exchange, as of 9:20 a.m., the KOSPI index stood at 2474.88, down 29.70 points (-1.19%) from the previous trading day. The KOSPI opened at 2496.93 and has been extending its losses.
In the stock market, individual investors are net buyers with 174 billion KRW, while foreigners and institutions are net sellers with 114 billion KRW and 63.9 billion KRW, respectively.
With the New York stock market closed for the Thanksgiving holiday, the Bank of Korea's rate cut the previous day is seen as having weakened investor sentiment due to concerns over a domestic economic slowdown.
The day before, the Bank of Korea cut the base interest rate by 0.25 percentage points to an annual rate of 3%. This is the first consecutive rate cut in 15 years. The rate cut appears to be a swift response to worsening domestic demand and economic conditions. The GDP growth rate for 2025 is projected at 1.9%, which is 0.2 percentage points lower than the August forecast of 2.1%.
Most of the top market capitalization stocks on the KOSPI are showing declines. Samsung Electronics is down 1.62%, and SK Hynix (-0.74%) is also weak. LG Energy Solution (-2.48%), Kia (-2.00%), KB Financial Group (-1.63%), NAVER (-1.22%), and Shinhan Financial Group (-1.50%) are also falling. Only Celltrion (0.32%) is slightly up.
At the same time, the KOSDAQ index is down 6.03 points (0.87%) from the previous trading day, standing at 688.46. Foreigners and institutions are selling 35.3 billion KRW and 14.5 billion KRW, respectively, dragging the index down.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
