KOSPI and KOSDAQ Continue Slight Fluctuations... Foreigners and Institutions 'Selling'

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[Asia Economy Reporter Lee Seon-ae] On the 1st, the domestic stock market started lower and has shown slight fluctuations since.

The KOSPI index opened down 3.60 points at 3195.67 (0.11%↓). The KOSDAQ index started the session down 0.24 points at 1038.09 (0.02%↓). As of 10:53 AM, KOSPI is down 0.13% at 3195.00, while KOSDAQ is up 0.07% at 1039.04.

Only individual investors are net buyers. Individuals have purchased approximately 152 billion KRW and 138.6 billion KRW in the KOSPI and KOSDAQ markets, respectively. Foreigners and institutions are net sellers. Foreigners are net selling about 57 billion KRW and 84.6 billion KRW in both markets. Institutions also have a selling bias with about 88.5 billion KRW and 39.3 billion KRW net sales in both markets.

Weak sectors in KOSPI include Chemicals (-0.87%), Pharmaceuticals (-0.84%), and Electrical & Electronics (-0.68%), while strong sectors are Telecommunications (+2.39%), Machinery (+1.17%), and Medical Precision Instruments (+0.75%). In KOSDAQ, strong sectors are Transportation Equipment & Parts (+4.48%), Telecommunication Services (+1.12%), and Computer Services (+0.76%), whereas weak sectors include Distribution (-0.98%), General Electrical & Electronics (-0.92%), and Digital Content (-0.82%).

Seosangyoung, a researcher at Mirae Asset Securities, said, "The U.S. stock market showed weakness due to disappointing economic indicators and fluctuated around the flat line, which is likely to increase the possibility of profit-taking following the strong rise in the Korean stock market the previous day. Considering that the Korean market may show a similar trend, it is expected that after a decline at the start, individual companies will undergo a process of digesting sales."

Meanwhile, on the 31st (U.S. Eastern Time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed down 39.11 points (0.11%) at 35,360.73. The large-cap focused Standard & Poor's (S&P) 500 index closed down 0.13% at 4522.68. The tech-heavy Nasdaq index fell 0.04% to 15,259.24. Both indices fell slightly one day after hitting record highs. In contrast, the small- and mid-cap focused Russell 2000 index rose 0.34% to 2273.77.

Investors are focusing on the employment report to be released later this week, based on Federal Reserve Chairman Jerome Powell's remarks about the possibility of tapering (reducing asset purchases) within the year but emphasizing the need to watch employment data more closely. According to the Wall Street Journal's survey of economists, August nonfarm payrolls are expected to increase by 720,000, down from 943,000 in the previous month. If the data slows, expectations for a delayed tapering timeline will strengthen. Conversely, if the data is stronger than expected, the tapering timeline could accelerate.

New York market experts assessed that despite the adjustment, the momentum of economic recovery remains alive, supporting the stock price rise.

Mark Haefele, Global Chief Investment Officer (CIO) of UBS Global Wealth Management, said, "The momentum of economic reopening and recovery is still alive, and I expect stock prices to rise further," adding, "The rise in the S&P 500 index is supported by solid earnings growth."

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