'Four Witches Day'... KOSPI Declines Early Amid Foreign and Institutional Selling

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] On the 10th, the KOSPI showed a downward trend due to selling pressure from foreign and institutional investors on this year's last 'Four Witching Day.'

As of 9:26 a.m. that day, the KOSPI recorded 2734.09, down 21.38 points (-0.78%) from the previous trading day. The index started at 2750.34, down 5.13 points (-0.19%), and widened its decline.

By investor type, individual investors were the only ones to net buy, purchasing 376.5 billion KRW. In contrast, foreigners and institutions net sold 137.5 billion KRW and 244.5 billion KRW, respectively.

Among the top 10 stocks by market capitalization, all stocks except Hyundai Motor and Kia Motors declined.

At the same time, the KOSDAQ rose 0.84 points (0.09%) from the previous trading day to 914.65. The index started at 913.02, down 0.79 points (0.09%), then reversed to an increase. By supply and demand, individuals and foreigners bought 84.1 billion KRW and 13.2 billion KRW, respectively. Meanwhile, institutions net sold 76.1 billion KRW.

Among the top market capitalization stocks, Celltrion Pharm, Seegene, and Alteogen rose, while Celltrion Healthcare and Kakao Games declined.

'Four Witching Day' is the day when the expiration dates of four types of derivatives?index futures, index options, individual stock options, and individual stock futures?coincide. In Korea, it falls on the second Thursday of March, June, September, and December each year. Usually, the market experiences volatility with a flood of closing trades near the end of the session, leading to an overall market decline.

So far this year, among the previous three Four Witching Days, two showed weakness and one showed strength. On March 12, coinciding with the full spread of the novel coronavirus infection (COVID-19), the KOSPI fell 3.87%, and the KOSDAQ dropped 5.39%. On June 11, the KOSPI fell 0.86%, and the KOSDAQ declined 0.21%. On September 10, the KOSPI rose 0.87%, and the KOSDAQ increased 1.71%.

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