KOSPI Turns Downward... "Conservative Investor Sentiment Amid Continued Selling by Pension Funds"

Positive Factors Like the Pardon Decision for Samsung Electronics Vice Chairman Lee Jae-yong Disappear

On the 10th, the KOSPI is displayed in the dealing room of the Hana Bank headquarters in Myeongdong, Jung-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The KOSPI, which started slightly higher, has turned downward and is widening its losses. The KOSDAQ also showed a decline, dropping to the 1040 level at one point. Analysts suggest that investment sentiment has somewhat weakened due to continuous selling by institutional investors, especially pension funds.

As of 11:22 a.m. on the 10th, the KOSPI stood at 3,238.47, down 0.67% from the previous day. After opening slightly higher at 3,272.44, the index shifted to a downward trend early in the session and is expanding its losses.

In the KOSPI market, increased selling pressure from foreigners and institutions appears to be pulling the index down. At the same time, foreigners and institutions sold net amounts worth 403 billion KRW and 316.8 billion KRW, respectively. Notably, pension funds have been consistently net sellers for nine consecutive trading days since the 28th of last month. Meanwhile, individual investors bought net amounts worth 965.3 billion KRW.

Park Gwangnam, head of the Digital Research Team at Mirae Asset Securities, explained, "With the special pardon of Samsung Electronics Vice Chairman Lee Jae-yong decided, the positive factors that could further boost the stock market have disappeared, removing reasons for investors to buy aggressively. The net selling by foreigners and institutional investors had an impact, and especially as pension funds among institutions continued their selling trend, it seems to have raised concerns among investors about a peak-out."

Most sectors are in decline. The banking sector fell sharply by -7.95%. This was followed by food and beverages (-2.01%), non-metallic minerals (-1.66%), construction (-1.65%), and finance (-1.62%). Pharmaceuticals (5.01%) and securities (0.12%) were among the few sectors that rose.

The KOSDAQ fell 0.79% from the previous day to 1,051.58. After opening slightly higher at 1,060.90, the KOSDAQ also shifted to a downward trend early in the session. It dropped more than 1% at one point in the morning, falling to the 1040 level.

In the KOSDAQ market, foreigners and institutions also showed strong selling. They sold net amounts worth 107.7 billion KRW and 48.6 billion KRW, respectively. Individual investors bought net amounts worth 162.9 billion KRW.

Almost all sectors declined. Non-metallic minerals (-2.02%), entertainment and culture (-1.70%), paper and wood (-1.67%), semiconductors (-1.64%), and construction (-1.52%) were among the sectors with the largest drops. Pharmaceuticals (0.67%) and internet (0.24%) were the only sectors to show slight gains.

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