Foreigners and institutions continue to sell both call and put options... Cautious stance ahead of the holiday break

Despite US Employment Data Release, Attention Also Needed on China Stock Market Situation

On the morning of the 8th, employees are working in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul.
[Photo by Yonhap News]

[Asia Economy Reporter Minwoo Lee] From the early stages of the trading session, foreign investors and institutions have continued to sell in both markets, creating a cautious atmosphere ahead of the Chinese stock market direction and the upcoming U.S. employment report. Both the KOSPI and KOSDAQ briefly turned downward but soon recovered, maintaining a sideways trend ahead of next week's holiday.

As of 10:57 a.m. on the 8th, the KOSPI recorded 2,964.10, up 0.16% from the previous day. After a strong start at 2,977.82, up 0.62% from the previous day, it dipped to 2,953.73 around 9:30 a.m. but rebounded thereafter.

Foreign investors and institutions have been continuously selling since the market opened. They sold net amounts of 73.7 billion KRW and 366.1 billion KRW respectively, increasing their selling volume after the opening. Individual investors bought a net amount of 422.6 billion KRW.

The ratio of sectors that rose and fell was similar. Transportation equipment (1.65%), pharmaceuticals (1.58%), and chemicals (1.10%) rose, while banks (-3.94%), non-metallic minerals (-2.88%), and transportation and warehousing (-2.70%) declined.

At the same time, the KOSDAQ recorded 954.40, up 0.10% from the previous day. After a strong start at 959.81, up about 0.67% from the previous day, it fell to 949.74 around 10:38 a.m. but recovered and remained in a stable range.

In the KOSDAQ market, foreign investors and institutions sold net amounts of 22.4 billion KRW and 72.1 billion KRW respectively. Individual investors bought a net amount of 300.6 billion KRW.

The ratio of sectors rising and falling was also similar. Paper and wood (3.49%), transportation equipment and parts (2.58%), and general electrical and electronics (2.30%) rose, while digital content (-1.53%), IT software & services (-1.34%), and software (-1.22%) declined.

Profit-taking selling following the sharp rise in the domestic stock market the previous day also appears to be occurring. Park Gwangnam, head of the Digital Research Team at Mirae Asset, explained, "In the case of KOSDAQ, foreign investors bought a net amount of 338.1 billion KRW the previous day but have already sold 220.1 billion KRW net this morning," adding, "It seems that some profit-taking selling has appeared."

Additionally, with the upcoming Korean holiday and the U.S. employment report, a somewhat cautious sentiment seems to be spreading. Park said, "The Chinese stock market, which reopened after a long holiday, is showing an early upward trend, but there seems to be a strong sentiment to watch the trend a bit longer," and analyzed, "With the U.S. non-farm payroll report being released on the 8th (local time) and next week's Korean holiday, the atmosphere is somewhat cautious."

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