KOSPI Slightly Rises Above 3220 Despite Foreign Selling... "Foreign Selling Pressure Expected to Ease"

Samsung Electronics and SK Hynix Hit Yearly Lowest Prices

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] On the 12th, the KOSPI continued its upward trend, supported by simultaneous net buying from individuals and institutions. Meanwhile, foreigners have shown a net selling trend for four consecutive trading days, and it is expected that this net selling flow will continue for the time being.

As of 10:45 AM, the KOSPI stood at 3,224.10, up 0.11% (3.48 points) from the previous day. The index started at 3,213.58, down 7.04 points (0.22%) from the previous close, and has been fluctuating within a narrow range since then.

By investor type, individuals and institutions led the market with net purchases of 383.3 billion KRW and 273.5 billion KRW, respectively. Foreigners were net sellers with 637.8 billion KRW. The large-scale net selling by foreigners in the domestic stock market is analyzed to be influenced by the sharp increase in new domestic COVID-19 cases, accelerated tapering discussions following strong U.S. July employment data, and global investment banks lowering their semiconductor sector weightings.

The top 10 market capitalization stocks showed mixed trends. Samsung Electronics (-1.15%) and SK Hynix (-3.79%), which fell sharply the previous day, continued to decline. Both stocks are currently at their lowest levels of the year. NAVER (-0.56%) and KakaoBank (-0.13%) also declined. On the other hand, Samsung Biologics (0.51%), Kakao (1.04%), LG Chem (2.23%), and Hyundai Motor (1.83%) rose.

The KOSDAQ also showed an upward trend. At the same time, the index rose 0.52% (5.46 points) to 1,057.38. It started at 1,054.16, up 2.24 points (0.21%) from the previous trading day.

On the KOSDAQ, individuals alone net bought 172.5 billion KRW. Foreigners and institutions were net sellers of 97.7 billion KRW and 72.6 billion KRW, respectively.

Among the top 10 market capitalization stocks, most showed gains. EcoPro BM, which was included in the MSCI index, rose the most at 2.19%. Celltrion Healthcare (0.58%), Kakao Games (1.11%), Celltrion Pharm (2.18%), and Pearl Abyss (0.44%) also rose. Meanwhile, SK Materials (-0.48%) fell.

Experts analyze that while the recent foreign investors’ selling of domestic stocks may continue, the pace is approaching a critical point. Researcher Nodonggil of Shinhan Financial Investment said, "Regarding foreigners’ selling, the recent scale seems excessive," adding, "The outflow of foreign funds may continue due to the pressure of a strong dollar, but the pace itself is expected to gradually slow down."

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