Individual Investors Alone Net Buy 1 Trillion Won... KOSPI and KOSDAQ Show Weak Trends

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 19th, the domestic stock market started lower and continued to show weakness into the afternoon. Although only individual investors are maintaining net buying, it is insufficient to lift the market. The atmosphere is filled with caution due to the spread of 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 2:03 PM, the KOSPI was down 0.97% at 3,244.98, and the KOSDAQ was down 0.22% at 1,049.64.

Foreigners and institutions' selling dominance is driving the index decline. Foreigners showed net selling of 362 billion KRW and 76.1 billion KRW in the KOSPI and KOSDAQ markets, respectively. Institutions also sold about 419.6 billion KRW and 62.6 billion KRW in both markets. Only individuals are showing net buying, with 809.1 billion KRW and 155.5 billion KRW, respectively.

Weak sectors in the KOSPI are steel and metal (-2.21%), medical precision (-1.42%), and finance (-1.41%), while strong sectors are telecommunications (+1.48%), electric and gas (+1.03%), and pharmaceuticals (+0.41%). Weak sectors in the KOSDAQ are construction (-1.76%), broadcasting services (-1.75%), and paper and wood (-1.62%), while strong sectors are general electric and electronics (+2.30%), chemicals (+1.15%), and IT components (+0.29%).

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

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

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.

With inflationary pressures and the spread of the COVID-19 Delta variant virus intensifying, stock prices faced downward pressure.

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