Asian Major Markets Decouple Further... KOSPI Closes Lower Amid Foreign and Institutional Selling Pressure

KOSDAQ Shows Mixed Trends, Closes Up 0.14%
KakaoBank Falls for 4 Consecutive Trading Days... Drops Out of Top 10 by Market Cap

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] While major Asian stock markets showed an upward trend, the domestic stock market lagged due to selling pressure from foreigners and institutions. KakaoBank, which fell for four consecutive trading days, dropped out of the top 10 by market capitalization.

On the 7th, the KOSPI closed at 3,187.42, down 0.50% (15.91 points) from the previous day. It even fell to 3,176.81 at 1:01 PM that day.

A decoupling phenomenon is occurring between major Asian stock markets and the domestic market. The Japanese Nikkei index rose for seven consecutive trading days, recovering to 30,000 yen (approximately 316,155 KRW) during the session. The Chinese stock market also showed an upward trend. The Chinese stock market surpassed a trading volume of 1 trillion yuan (179.5 trillion KRW) for 34 consecutive trading days.

Key Chinese indicators exceeded expectations, contributing positively to the stock market. China's exports in August increased by 25.6% year-on-year, and imports rose by 33.1% during the same period. Consequently, the Hong Kong Hang Seng Index also rose due to recent net inflows from Gangqutong (Chinese capital investment in the Hong Kong stock market) and bargain buying of big tech stocks.

On the other hand, despite the positive Chinese indicators, the domestic stock market showed weakness as foreigners and institutions sold off. Foreigners and institutions net sold 331 billion KRW and 119.5 billion KRW, respectively. Individuals net bought 453.5 billion KRW.

Almost all sectors declined. The banking sector had the largest drop at 4.68%. This was followed by services (-1.30%), finance (-1.09%), electrical and electronics (-1.07%), and telecommunications (-0.88%). On the upside were steel and metals (2.76%), textiles and apparel (1.31%), chemicals (1.10%), non-metallic minerals (1.03%), and machinery (0.31%).

Most of the top 10 stocks by market capitalization fell. NAVER had the largest decline at 2.09%, followed by Samsung Electronics (-1.55%), SK Hynix (-1.42%), Hyundai Motor (-1.16%), Kakao (-0.96%), Samsung Biologics (-0.42%), and Kia (-0.23%). LG Chem (1.07%), Samsung SDI (1.04%), and Celltrion (0.36%) rose. KakaoBank, down 5.68% from the previous day, fell to 12th place in market capitalization, overtaken by Kia.

The KOSDAQ closed at 1,054.43, up 0.14% (1.47 points) from the previous day. It showed mixed movements throughout the day but turned upward after 2:15 PM. It even rose to 1,054.76 at 9:08 AM.

Foreigners switched to buying during the session, net buying 37.3 billion KRW. Individuals and institutions net sold 16 billion KRW and 20.4 billion KRW, respectively.

Sector indices were mixed. The internet sector had the largest decline at 1.46%, followed by pharmaceuticals (-0.97%), publishing and media duplication (-0.89%), digital content (-0.87%), and textiles and apparel (-0.85%). On the rise were non-metallic minerals (3.67%), paper and wood (2.74%), transportation (2.68%), broadcasting services (2.19%), and metals (1.94%).

The top 10 stocks by market capitalization also showed mixed results. L&F had the largest gain at 7.80%, followed by EcoPro BM (5.27%), HL Biopharma (3.68%), Celltrion Healthcare (0.17%), and Celltrion Pharm (0.12%). Pearl Abyss (-1.98%), Alteogen (-1.98%), Seegene (-1.98%), Kakao Games (-0.77%), and SK Materials (-0.46%) declined.

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