KOSPI Declines Sharply in Morning... Foreigners and Institutions 'Sell'

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] The KOSPI is extending its decline amid selling pressure from foreigners and institutions.

As of 10:32 a.m. on the 27th, the KOSPI stood at 3,148.54, down 0.63% (19.89 points) from the previous trading day. The index opened the session at 3,170.84, up 0.08% (2.41 points) from the previous day, but soon turned downward.

Although the Bank of Korea kept interest rates unchanged this morning and significantly raised its economic growth forecast to 4%, it failed to reverse the market trend. Looking at investor trends, foreigners and institutions sold stocks worth 212.4 billion KRW and 82.4 billion KRW respectively, while individuals alone bought stocks worth 316.9 billion KRW. In the early session, institutions showed buying momentum and maintained a flat trend, but as they turned to net selling, the decline widened.

In the KOSPI market, the construction sector is showing strength. Construction rose 2.07%, the largest gain among sectors, followed by machinery (1.19%), food and beverages (0.77%), and insurance (0.36%). In the construction sector, Hyundai Construction rose 5.1%, Daewoo Construction 2.7%, HDC Hyundai Development Company 2.5%, Halla 2.5%, and Hanshin Engineering & Construction 2.2% also showed upward trends.

Despite news of increased electric vehicle investment by U.S. automaker Ford, secondary battery-related stocks have not shown significant gains. Samsung SDI fell 2.35% from the previous trading day, while SK Innovation rose 1.46%. LG Chem, which had plunged due to costs from a recall decision and a negative report from Credit Suisse (CS) the previous day, continued its decline for the second consecutive trading day. As of now, LG Chem is trading at 795,000 KRW, down 4.45% from the previous day.

Most of the top market capitalization stocks are declining. Samsung Electronics also fell 0.75% from the previous day to 79,200 KRW, while NAVER (-2.20%), Samsung Biologics (-3.11%), Hyundai Motor (-1.34%), and Celltrion (-1.85%) declined.

The KOSDAQ index at the same time stood at 961.78, down 0.44% (4.29 points) from the previous trading day. The index started the session at 967.01, up 0.10% (0.95 points) from the previous day, but is extending its losses. In the market, individuals alone bought stocks worth 117.9 billion KRW, while foreigners and institutions bought stocks worth 82.8 billion KRW and 29.3 billion KRW respectively.

In the KOSDAQ market, construction rose 1.23%, with transportation (0.43%), metals (0.34%), and textiles and apparel (0.29%) also showing gains. Most of the top market capitalization stocks in the KOSDAQ market are declining. Celltrion Healthcare recorded 115,300 KRW, down 1.45% from the previous day. Celltrion Pharm (-1.49%), Kakao Games (-1.72%), EcoPro BM (-0.68%), Pearl Abyss (-1.20%), and CJ ENM (-0.19%) also declined.

Han Ji-young, a researcher at Kiwoom Securities, said, “Since there is MSCI Emerging Markets index rebalancing based on closing prices, there is a possibility of increased volatility in supply and demand due to mechanical rebalancing through program arbitrage channels in the late afternoon session.”

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