Individuals Buy, Foreigners and Institutions Sell... KOSPI Slips to 3180 Level

External Factors Including Australian Monetary Policy Meeting Still Remain
KOSDAQ Started Up but Shows Mixed Trends

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] Both the KOSPI and KOSDAQ are seeing individual investors buying, but foreigners and institutions are selling intensively. It is interpreted that the domestic stock market has fallen into instability due to external variables such as Australia's monetary policy meeting.

As of 11:11 a.m. on the 7th, the KOSPI recorded 3,187.76, down 0.49% (15.57 points) from the previous day. It even dropped to 3,179.31 at 10:36 a.m. that day.

European stock markets showed strength, but it seems to have already been reflected the day before. Seo Sang-young, a researcher at Mirae Asset Securities, explained, "The European stock market rose due to German economic indicators," adding, "However, since the German economic indicators were announced during the afternoon session of the domestic market the previous day, their influence will be limited." Germany announced the day before that the growth rate of factory orders in July increased by 3.4% compared to the previous month. Although this is slower than the 4.6% growth rate announced last month, it exceeds the expected -0.9%.

Additionally, there is an interpretation that external variables such as the results of Australia's monetary policy meeting are affecting the stock market. Ahead of the Reserve Bank of Australia's monetary policy meeting that day, a Bloomberg survey of experts predicted that Australia would postpone plans for tapering asset purchases. Just last month, the Reserve Bank of Australia announced it would reduce weekly bond purchases from 5 billion AUD (approximately 4.3168 trillion KRW) to 4 billion AUD. However, with the recent global spread of the COVID-19 Delta variant, economic uncertainty is increasing.

Meanwhile, the selling pressure from foreigners and institutions is leading to a decline in the index. Foreigners and institutions sold a net 143.3 billion KRW and 111.4 billion KRW, respectively. Individuals bought a net 245.7 billion KRW.

Most sectors declined. The banking sector had the largest drop at 2.98%. This was followed by services (-1.13%), finance (-1.07%), electrical and electronics (-0.92%), and telecommunications (-0.76%). On the other hand, steel and metals (2.47%), non-metallic minerals (0.87%), textiles and apparel (0.82%), machinery (0.80%), and chemicals (0.52%) rose.

Almost all of the top 10 stocks by market capitalization fell. KakaoBank had the largest decline at 3.75%, followed by Samsung Electronics (-1.42%), Hyundai Motor (-1.40%), NAVER (-1.32%), SK Hynix (-0.94%), Celltrion (-0.72%), Kakao (-0.64%), and Samsung Biologics (-0.63%). Samsung SDI (0.91%) and LG Chem (0.13%) rose.

At the same time, the KOSDAQ recorded 1,053.01, unchanged (0.05 points) from the previous day. The KOSDAQ, which started the day higher, showed mixed trends, turning downward around 9:22 a.m.

Foreigners and institutions are selling. Foreigners and institutions sold a net 13.8 billion KRW and 18.9 billion KRW, respectively. Individuals bought a net 36.4 billion KRW.

Sector indices were mixed. The semiconductor sector had the largest decline at 0.91%, followed by internet (-0.89%), textiles and apparel (-0.86%), publishing and media replication (-0.66%), and construction (-0.53%). On the other hand, paper and wood (2.16%), general electrical and electronics (1.95%), chemicals (1.70%), other manufacturing (1.13%), and IT components (1.10%) rose.

Many of the top 10 stocks by market capitalization showed strength. L&F had the largest increase at 7.44%, followed by EcoPro BM (5.49%), Pearl Abyss (0.47%), HL Biopharma (0.15%), and Celltrion Pharm (0.06%). Seegene (-1.52%), Alteogen (-1.16%), SK Materials (-0.58%), and Celltrion Healthcare (-0.51%) declined. Kakao Games remained flat.

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