KOSPI Falls on Foreign Selling Pressure... "Kia Motors Plummets 13%"

"Volatility Expected to Increase Ahead of Option Expiration Before Seollal Holiday"

Hyundai Motor Group "No Apple Car Negotiations" Announcement Leads to Decline
Hyundai Motor Down 6%, Hyundai Wia Down 10%, Hyundai Mobis Down 8%

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] In the domestic stock market, foreign investors are increasing their net selling ahead of the option expiration date before the Lunar New Year holiday. During the session, the KOSPI index fell by over 1%, dropping to the 3080 level.

As of 10:45 a.m. on the 8th, the KOSPI stood at 3099.51, down 0.68% (-21.12 points) from the previous trading day. The KOSPI opened the session at 3113.63, down 0.22% (7.00 points) from the previous day. Looking at investor trends, foreign investors are increasing their selling volume. Foreigners have sold stocks worth 263.4 billion KRW, while individuals and institutions bought stocks worth 92.5 billion KRW and 181.7 billion KRW, respectively.

Seosangyoung, a researcher at Kiwoom Securities, explained, “Ahead of the Lunar New Year holiday and the option expiration date (the 10th), market changes are expected depending on foreign investors’ supply and demand trends. While the prospect of faster approval of additional US stimulus measures was a positive factor, the possibility of a faster pace of interest rate hikes is a burden.”

By sector, the highest gains were seen in textiles and apparel (2.33%), banking (2.36%), construction (1.29%), and insurance (1.22%). Conversely, transportation equipment (-7%) and telecommunications (-1.55%) experienced significant declines.

Among the top market capitalization stocks, most showed a downward trend. Samsung Electronics was down 0.12% from the previous session, trading at 83,400 KRW. SK Hynix (-0.78%) also declined. Both stocks are believed to have been affected by the Philadelphia Semiconductor Index’s decline last weekend. On the 5th (local time), the Philadelphia Semiconductor Index fell about 0.8% due to Qualcomm’s weak sales. Currently, foreign investors have sold 498,000 shares of Samsung Electronics, while institutions have purchased 424,000 shares.

Shares of Hyundai Motor Group fell on the day. Hyundai Motor announced in the morning that it is not in discussions with Apple regarding autonomous vehicle development. Kia Motors and Hyundai Mobis, which were strongly rumored to be involved in Apple Car production, also released similar statements, triggering a wave of sell-offs. Accordingly, Kia Motors traded at 88,200 KRW, down 13% from the previous day. Hyundai Motor fell 6%, while Hyundai Wia (-10.27%), Hyundai Mobis (-8.65%), and Hyundai Glovis (-8.82%) also declined.

At the same time, the KOSDAQ index stood at 961.53, down 0.62% (5.89 points) from the previous trading day. The index opened at 966.94, down 0.05% (0.48 points) from the previous day. Looking at investor trends, individuals bought stocks worth 99.4 billion KRW, while foreigners and institutions sold stocks worth 41.4 billion KRW and 45.7 billion KRW, respectively.

By sector, the largest decline was in transportation equipment and parts (-2.46%) due to a sharp drop in automobile-related parts and equipment stocks. Paper and wood (-1.51%) and publishing and media (-0.99%) sectors also declined. Among the top market capitalization stocks, HL Biopharma (0.22%), Seegene (1.57%), and Kakao Games (5.34%) rose.

The securities industry expects short-term volatility to expand for the time being. Lee Kyungmin, a researcher at Daishin Securities, said, “KOSPI trading volume has rapidly decreased after peaking at 44 trillion KRW in January, so a correction phase is expected for the time being. The Korean Lunar New Year holiday may also stimulate profit-taking sentiment, so if a correction occurs after the 3000 level, it is effective to respond with a dollar-cost averaging strategy.”

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