KOSPI and KOSDAQ Morning Gains Narrow... Foreigners Continue Net Selling

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] Influenced by the rise in the U.S. stock market, the early gains of over 1% seen in the KOSPI and KOSDAQ indices significantly slowed down. It is analyzed that the upward momentum of the indices weakened as selling pressure continued mainly from foreigners and institutions.

At 10:12 a.m. on the 6th, the KOSPI was trading at 2,970.45, up 0.28% (8.28 points) from the previous trading day. The index opened at 2,986.06, up 0.81% (23.89 points) from the previous day, showing an early rise close to 1%, but the gains soon diminished. Looking at investor trends, individuals alone bought stocks worth 94 billion KRW, while foreigners and institutions sold stocks worth 48.8 billion KRW and 52.8 billion KRW, respectively.

By sector, insurance (2.01%), steel & metals (1.19%), finance (0.98%), transportation equipment (0.90%), and chemicals (0.935%) showed upward trends. Among insurance sectors, Hanwha Life (2.8%), Hyundai Marine & Fire Insurance (2.9%), Samsung Fire & Marine Insurance (2.5%), and Tongyang Life Insurance (1.9%) continued their gains.

Among the top market capitalization stocks, Samsung Electronics remained unchanged at 72,200 KRW, while SK Hynix (0.10%), NAVER (2.83%), LG Chem (2.01%), Kakao (3.15%), Samsung SDI (1.47%), and Hyundai Motor (1.55%) rose.

The KOSDAQ index at the same time was at 955.25, down 0.01% (0.12 points) from the previous trading day. The index started the day at 962.62, up 0.76% (7.25 points), showing intraday gains exceeding 1%, but has since turned downward. Investor trends show individuals bought stocks worth 81.1 billion KRW, while foreigners and institutions sold stocks worth 72.7 billion KRW and 1.3 billion KRW, respectively.

By sector, broadcasting services (2.85%), digital content (2.66%), paper & wood (2.66%), and telecommunications & broadcasting services (2.35%) showed the largest gains. Among the top market capitalization stocks, Celltrion Healthcare (-0.55%), EcoPro BM (-0.02%), HL Biopharma (-2.10%), and Celltrion Pharm (-0.32%) declined, while Pearl Abyss (2.33%), Kakao Games (2.37%), SK Materials (0.54%), and CJ ENM (4.43%) rose.

Kim Young-hwan, a researcher at NH Investment & Securities, explained, “Investor sentiment has further contracted due to existing negative factors such as uncertainty over the U.S. debt ceiling negotiations and concerns about economic slowdown caused by China’s power shortages. Given that inflationary pressures heightened by global supply chain disruptions may continue until early 2022, it is necessary to maintain interest in sectors benefiting from rising prices of natural gas, coal, and metals, as well as domestic reopening-related sectors (distribution, apparel, entertainment, leisure) related to the 'With COVID' transition.”

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