Domestic Stock Market Weakens Together Due to Net Selling by Foreigners and Institutions... "KOSDAQ Expected to Show Relative Strength"

[Image source=Yonhap News]

[Asia Economy Reporter Jihwan Park] The domestic stock market is showing a simultaneous weakness due to net selling by foreigners and institutions. However, experts expect the KOSDAQ to show relative strength compared to the KOSPI for the time being.

As of 10:03 AM on the 1st, the KOSPI is at 3281.44, down 0.46% (15.24 points) from the previous trading day. The KOSPI opened at 3297.92, up 0.04% (1.24 points) from the previous close.

By investor type, individuals alone are defending the index with net buying of 570.4 billion KRW. Foreigners and institutions net sold 211.2 billion KRW and 354.5 billion KRW, respectively.

Among the top market capitalization stocks, the price movements were mixed. Most stocks such as Samsung Electronics (-0.74%), SK Hynix (-1.57%), Kakao (-1.23%), Hyundai Motor (-1.04%), and Celltrion (-1.12%) were down. On the other hand, LG Chem (1.18%) and Samsung SDI (4.01%) rose.

The KOSDAQ, which had continued its upward trend for four consecutive trading days and set a new yearly high in early trading, also turned downward. At the same time, the index was down 0.06% (0.60 points) to 1029.36. The index started the session at 1030.48, up 0.05% (0.52 points) from the previous day. Early in the session, it rose to 1032.87, surpassing the intraday record high of 1032.64 set on April 19.

By investor type, individuals alone net bought 126.9 billion KRW. Foreigners and institutions are net selling 87.1 billion KRW and 31.3 billion KRW, respectively.

Among the top market capitalization stocks, Celltrion Healthcare was down 0.09% at 115,600 KRW. Others such as EcoPro BM (-0.33%), CJ ENM (-0.16%), and SK Materials (-0.31%) also declined. Meanwhile, Pearl Abyss (10.44%), Seegene (2.90%), and Kakao Games (0.87%) rose.

Experts expect the KOSDAQ to maintain relative strength over the KOSPI for the time being. The KOSPI is judged to have reduced upward momentum again after breaking through the 3300-point mark. In contrast, the KOSDAQ has surpassed 1000 points again and reached a yearly high. Following the U.S. Federal Open Market Committee (FOMC) meeting, the decline in interest rates has refocused attention on growth stocks, increasing the rebound and recovering trading volume to the 10 trillion KRW level. The upward momentum is spreading across sectors.

Yujun Choi, a researcher at Shinhan Financial Investment, said, "The relative strength of the KOSDAQ compared to the KOSPI was weak from the end of April but has been recovering since mid-May. The main driver is the rebound in the communication sector, composed of internet, media, and games, and the KOSDAQ's relative advantage is likely to continue until the second quarter earnings season fully begins."

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