'Inflation and COVID-19 Concerns' Foreigners and Institutions Selling... Only Individuals Supporting the Struggling KOSPI

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 19th, the domestic stock market started lower and continued to weaken. Although only individual investors are maintaining net purchases, it is insufficient to lift the market. Investor sentiment is subdued amid spreading inflationary pressures and concerns over the resurgence of COVID-19.

On this day, the KOSPI opened at 3,258.87, down 18.04 points (0.55%↓). The KOSDAQ started the session at 1,049.51, down 2.47 points (0.23%↓). As of 10:42 a.m., the KOSPI remained at 3,244.71, down 0.98%. The KOSDAQ recorded a 0.24% decline at 1,049.50.

Foreigners and institutions' selling dominance is fueling the index decline. Foreign investors showed net selling of 204.4 billion KRW and 76.8 billion KRW in the KOSPI and KOSDAQ markets, respectively. Institutions also sold about 258.1 billion KRW and 37.9 billion KRW in both markets. Only individual investors are on the net buying side, purchasing 494.4 billion KRW and 124.3 billion KRW, respectively.

Kim Dae-jun, a researcher at Korea Investment & Securities, analyzed, "The KOSPI has not surpassed 3,300 since the 6th," adding, "The spreading COVID-19 Delta variant domestically and internationally is acting as a factor weakening the upward momentum of the index."

Seo Sang-young, a researcher at Mirae Asset Securities, stated, "The U.S. stock market declined despite strong retail sales due to weak consumer sentiment indices, the Delta variant virus caused weakness in cyclical stocks, and the Philadelphia index fell more than 2% daily last week, all of which burden the domestic stock market."

Meanwhile, on the 16th (local time), the New York stock market saw the Dow Jones Industrial Average (-0.86%), Standard & Poor's (S&P) 500 Index (-0.75%), and Nasdaq Index (-0.80%) all fall simultaneously.

Despite strong U.S. retail sales in June, the University of Michigan's July consumer confidence index fell from the previous month and significantly missed expectations, dampening hopes for economic recovery.

Inflationary pressures combined with the spread of the COVID-19 Delta variant also exerted downward pressure on stock prices.

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