Continued Fluctuations Within the Box Range... Individuals and Foreigners Sell, Institutions Buy "Volatile Market"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 28th, the domestic stock market, which started off declining, succeeded in turning to a rebound but then shifted back to a downward trend, continuing to fluctuate within a box range. Even the upward turn only achieved a slight rise, and the volatile market conditions persist.

On the 28th, the KOSPI index opened at 3,226.06, down 6.47 points from the previous day (0.20%↓). The KOSDAQ index also started the session at 1,043.19, down 3.36 points (0.32%↓). As of 10:52 a.m. that day, the KOSPI was trading at 3,233.42, up 0.03%. The KOSDAQ reverted to a downward trend, trading at 1,044.07, down 0.24%.

Individual investors showed a net selling preference of 4.5 billion KRW in the KOSPI market and a net buying preference of 161.7 billion KRW in the KOSDAQ market. Foreign investors were net sellers in both markets, selling approximately 217.8 billion KRW and 86.7 billion KRW respectively. Meanwhile, institutions were net buyers in the KOSPI market, purchasing about 224.2 billion KRW, but showed a net selling preference of about 62.7 billion KRW in the KOSDAQ market.

Seosangyoung, a researcher at Mirae Asset Securities, stated, "The U.S. stock market faced selling pressure due to concerns over the spread of COVID-19 and profit-taking in large-cap tech stocks that had seen significant gains. The Philadelphia Semiconductor Index fell 1.86%, the Russell 2000 Index dropped 1.13%, and the Dow Transportation Index declined 2.21%. Additionally, the weakening of the Korean won introduced negative factors affecting foreign investor demand, which is a burden." However, he added, "Considering that the spread of the COVID-19 Delta variant may ease tightening concerns at the Federal Open Market Committee (FOMC), the Korean stock market is expected to show a stock-specific market where individual stocks digest selling pressure while awaiting the FOMC, rather than experiencing an expanded correction."

Lee Euntaek, a researcher at KB Securities, emphasized, "Although fluctuations may continue for a while due to concerns about the 'economic peak + tightening,' the price adjustment caused by tightening is not the 'start of a bear market' but should be understood as a 'speed control process' that relieves valuation pressure." He added, "Therefore, after the adjustment, the market is expected to return to a bull market, and the price fluctuations present another buying opportunity."

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