KOSPI Closes at 3170 Amid Foreign and Institutional Selling... "Time to Pay Attention to Oversold Stocks"

[Image source=Yonhap News]

[Asia Economy Reporter Park Ji-hwan] The KOSPI closed below the 3170 level, falling due to simultaneous selling pressure from foreigners and institutions. Experts predict that, given the numerous uncertainties surrounding the domestic stock market for the time being, a short-term strategy focusing on stocks that have experienced excessive declines will be effective.

On the 2nd, the KOSPI closed at 3,175.85, down 31.17 points (0.97%) from the previous trading day. The index started the day at 3,198.03, down 8.99 points (0.28%), and continued its downward trend throughout the session.

On the KOSPI, individual investors were the sole net buyers with 942.5 billion KRW. In contrast, foreigners and institutions were net sellers of 381.9 billion KRW and 575.2 billion KRW, respectively.

Among the top 10 stocks by market capitalization, most declined. Samsung Electronics closed at 76,000 KRW, down 1.04% (800 KRW) from the previous day. SK Hynix (-1.39%), NAVER (-0.56%), Samsung Biologics (-1.46%), Samsung SDI (-4.82%), LG Chem (-1.39%), and Hyundai Motor (-1.63%) also fell. KakaoBank closed down 7.77% following news of a block deal (off-hours large volume trade) involving the Korea Post.

The KOSDAQ closed at 1,047.19, up 1.21 points (0.21%) from the previous day. Individual investors were net buyers of 147.2 billion KRW, while foreigners and institutions were net sellers of 97.8 billion KRW and 37.6 billion KRW, respectively.

Among the top 10 stocks by market capitalization on the KOSDAQ, Celltrion Healthcare closed at 120,100 KRW, down 1.23% (1,500 KRW). EcoPro BM (-3.35%), Celltrion Pharm (-2.12%), Kakao Games (-0.25%), and Pearl Abyss (-2.23%) also declined. In contrast, HL Biopharma rose alone by 6.45%.

There is an analysis that a short-term response strategy focusing on stocks with excessive declines will be effective. Lee Kyung-min, a researcher at Daishin Securities, said, "Although the valuation burden on the KOSPI has somewhat eased due to last month's price adjustment, various uncertainties remain, including debates over the economic peak, the spread of the Delta variant, and the Federal Reserve's monetary policy," emphasizing, "It seems necessary to focus on companies that have secured a safety margin through excessive declines and high dividends."

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