Foreigners Turn Net Sellers in the Morning... KOSPI Falls Below 3270 Level

Increased Volatility in Foreign Investor Supply on Options Expiration Day
KOSDAQ Falls Over 1% Due to Net Selling by Foreigners and Institutions
"COVID-19 Spread and Profit-Taking Desire Impact Domestic Stock Market"

[Asia Economy Reporter Minji Lee] The KOSPI index turned lower as foreign investors switched to net selling during the trading session.

As of 11:10 a.m. on the 8th, the KOSPI stood at 3,271.10, down 0.46% (13.80 points) from the previous trading day. The index opened at 3,287.68, up 0.07% (2.34 points) from the previous day, but turned downward as foreign investors began net selling. During the session, it fell as much as 0.6% to 3,265.42. Looking at investor trends, foreign investors sold stocks worth 142 billion KRW alone, while individuals and institutions bought stocks worth 21.5 billion KRW and 110.9 billion KRW, respectively.

The index is analyzed to have been affected by increased volatility in foreign investors' supply and demand due to options expiration day. Ji-young Han, a researcher at Kiwoom Securities, said, "Considering it is options expiration day, the possibility of short-term volatility in futures and spot supply and demand by foreign investors and institutions during the session should be kept open," adding, "Since uncertainty has not been completely resolved, there is a possibility that the improvement in foreign investors' supply and demand for mega-cap stocks such as Samsung Electronics may be delayed." Additionally, the spread of COVID-19 and the Japanese stock market's weakness following the announcement of plans to declare a state of emergency in the Tokyo area are interpreted as reasons why foreign investors switched to net selling.

By sector, non-metallic minerals rose the most at 1.90%, largely influenced by news that POSCO Chemical is expanding its battery cathode materials, which led to a rise of over 6%. Other sectors such as telecommunications (0.58%) and iron and steel metals (0.56%) also showed gains.

Among the top market capitalization stocks, Kakao and NAVER rose by 0.93% and 2.04%, respectively. On the other hand, Samsung Electronics (-0.73%), SK Hynix (-1.21%), LG Chem (-1.38%), Samsung SDI (-1.34%), and Hyundai Motor (-1.08%) declined.

The KOSDAQ index at the same time stood at 1,034.23, down 1.25% (13.07 points) from the previous trading day. The index opened at 1,047.96, up 0.07% (0.69 points) from the previous day, but soon turned downward.

Looking at investor trends, foreign investors and institutions sold stocks worth 230.7 billion KRW and 46.7 billion KRW, respectively, while individuals alone bought stocks worth 281.4 billion KRW. Sang-young Seo, a researcher at Mirae Asset Securities, said, "In the case of KOSDAQ, foreign investors' net selling is centered on the pharmaceutical and bio sectors," adding, "Considering it was recently the strongest market, it is interpreted that the desire for profit-taking was high."

By sector, only telecommunications services (3.77%) and digital content (0.57%) showed gains, while construction (-3.13%), paper and wood (-2.96%), and information devices (-2.71%) had the largest declines.

Among the top market capitalization stocks, Celltrion Healthcare and Celltrion Pharm fell by 1.31% and 2.88%, respectively. Others such as Seegene (-0.33%), EcoPro BM (-2.57%), Alteogen (-2.33%), and SK Materials (-0.14%) also declined. On the other hand, Kakao Games and Pearl Abyss rose by 4.64% and 0.90%, respectively.

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