KOSPI and KOSDAQ Slightly Lower in Early Trading Due to Institutional Selling

[Asia Economy Reporter Koo Eun-mo] Both the KOSPI and KOSDAQ markets are showing slight declines in the early trading session.

On the 14th, the KOSPI opened at 2403.74, up 0.59 points (0.02%) from the previous trading day. Although the KOSPI started the day higher, it soon turned downward and is showing a slight decline. As of 9:19 AM, it is trading at 2401.79, down 1.36 points (0.06%) from the previous day.

Overnight, major indices on the New York Stock Exchange fell for the first time in five days due to caution over the earnings season, a series of halts in clinical trials for COVID-19 treatments, and a deadlock in U.S. stimulus measures. On the 13th (local time) at the NYSE, the Dow Jones Industrial Average closed at 28,679.81, down 157.71 points (0.55%) from the previous day. The Standard & Poor's (S&P) 500 index fell 22.29 points (0.63%) to 3511.93, and the tech-heavy Nasdaq index closed down 12.36 points (0.10%) at 11,863.90.

Seosangyoung, a researcher at Kiwoom Securities, explained, "News of halted clinical trials for COVID-19 treatments and vaccines caused sectors affected by the pandemic to underperform, and although financial stocks reported solid earnings, concerns over a slowdown in economic recovery led to cautious outlooks, increasing the decline." He added, "Another notable factor was profit-taking after major events involving Apple and Amazon, which is expected to negatively impact the Korean stock market." Furthermore, he noted, "The strengthening of the dollar and the decline in U.S. Treasury yields, which have increased demand for safe-haven assets, are also negative factors for foreign investor flows, adding to the pressure."

Looking at current trading trends by investor type, foreign investors and individual investors are net buyers of 38.8 billion KRW and 21.1 billion KRW, respectively. In contrast, institutional investors are net sellers of 60.2 billion KRW.

By sector, service industries, transportation equipment, and electrical/electronics are rising, while transportation and warehousing, telecommunications, and distribution sectors are falling.

Among the top market capitalization stocks, Hyundai Motor, NAVER, and SK Hynix are rising. Conversely, Celltrion, SK Telecom, LG Chem, and LG Household & Health Care are declining.

The KOSDAQ index is also showing a slight decline. It opened at 873.04, up 1.12 points (0.13%) from the previous day, but like the KOSPI, it soon turned downward and is recording a slight decline. As of 9:19 AM, it is at 871.63, down 0.29 points (0.03%) from the previous day.

Regarding current investor flows, individual investors are net buyers of 30.6 billion KRW, while institutional and foreign investors are net sellers of 20.3 billion KRW and 1.3 billion KRW, respectively.

By sector, non-metal, telecommunications equipment, and internet sectors are rising, while telecommunications services, publishing/media replication, and semiconductors are falling.

Among the top market capitalization stocks, Seegene, KMV, and Studio Dragon are rising. On the other hand, Alteogen, Pearl Abyss, Celltrion Pharm, and Celltrion Healthcare are declining.

This content was produced with the assistance of AI translation services.