'Panic Selling' Foreigners' 2 Trillion Won Sell-Off Bomb... KOSPI Plummets on 'Black Friday'

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 13th, the KOSPI index fell below the 3200 mark, showing a downward trend. This is due to strong selling pressure from foreigners targeting large semiconductor stocks such as Samsung Electronics and SK Hynix.

As of 1:27 PM on the same day, the KOSPI was recorded at 3,163.88, down 1.39% compared to the previous trading day. During the session, it dropped to 3,146.76, breaking below the 3,150 level. This marks seven consecutive trading days of decline since the 5th.

Currently, foreigners have net sold stocks worth 2.0658 trillion KRW. On the other hand, individuals have purchased about 2.1207 trillion KRW worth of stocks. Institutions are showing a net selling position of 97 billion KRW.

The main driver of the index decline is Samsung Electronics. It is currently down 3.38%, trading at 74,400 KRW.

Han Ji-young, a researcher at Kiwoom Securities, analyzed, "Due to concerns over the semiconductor industry such as the decline in DRAM prices, foreigners are heavily selling large domestic semiconductor stocks like Samsung Electronics, causing a sharp drop. Additionally, early tapering (reduction of asset purchases) expectations and weakened investment sentiment toward emerging markets have strengthened the dollar, which is a cause of the foreign selling pressure. Also, foreigners are reducing their positions in the domestic stock market in preparation for increased uncertainty and volatility due to the market closure until next Monday."

At the same time, the KOSDAQ index also plunged 1.52% from the previous trading day to 1,038.07. The index started the day at 1,054.28, up 0.19 points (0.02%), before turning downward.

Oh Tae-dong, head of NH Investment & Securities Center, stated, "Currently, foreigners are reflecting fears about the semiconductor industry outlook for next year. The market is likely to continue a stock-specific trend rather than an index trend until around September."

The rising exchange rate is also a factor stimulating foreign capital outflow. The current KRW/USD exchange rate has risen to the 1,167 level, marking the highest point since October last year.

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