KOSPI Shows Mixed Trends for First 20 Minutes... Declines Amid Increased Institutional Selling

The Only 'Saja' Pension Fund Turns to Net Selling
Institutional Investors Expand Selling Scale in the Morning
Kakao, Samsung Electronics, LG Chem See Reduced Gains

[Asia Economy Reporter Hwang Yoon-joo] On the morning of the 4th, the KOSPI turned to a downward trend. Although a rebound buying spree flowed in ahead of tomorrow's Federal Open Market Committee (FOMC) results, institutions expanded their selling pressure, showing extreme volatility and maintaining a slight decline.

As of 11:37 a.m., the KOSPI was trading at 2,678.18, down 2.28 points (0.09%).

The KOSPI opened at 2,690.45, up 9.9 points (0.37%) and maintained an upward trend in the morning. However, the gains gradually decreased, and at 11:12:40 a.m., it recorded its first decline at 2,680.43, down 0.03 points.

Afterward, it showed mixed movements for 20 minutes. It rose immediately after falling but dropped again to 2,680.29, down 0.17 points, at 11:13:40 a.m. The KOSPI, which turned upward again, recorded 2,680.04 (down 0.42 points) two minutes later at 11:15:50 a.m.

From the first decline at 11:12 a.m. to 11:32 a.m., the KOSPI index fell 17 times in 20 minutes, averaging about once per minute in fluctuations.

On the 12th, as the KOSPI index started slightly lower due to selling pressure from foreigners and institutions, dealers were working in the Hana Bank dealing room in Euljiro, Seoul. Photo by Moon Honam munonam@

Looking at trading trends, individual investors are net buyers with 70.3 billion KRW. In contrast, foreigners and institutions are net sellers with 12.4 billion KRW and 66.5 billion KRW, respectively. Institutions reduced their net selling from 46.6 billion KRW immediately after the market opened to 29.6 billion KRW but have since significantly expanded their selling again.

Examining institutions in detail, the selling pressure from pension funds appears to have influenced the downward turn. While the KOSPI showed mixed trends, pension funds among institutional investors were net buyers of 4 billion KRW. However, after 10:30 a.m., pension funds also turned to net selling of 4.6 billion KRW, coinciding with the index's decline.

The main drivers of institutional selling are financial investment at -19.2 billion KRW and private equity funds at -37.1 billion KRW. Mutual funds at -5.7 billion KRW, other financial institutions at -2.7 billion KRW, and banks at -0.4 billion KRW all participated in selling.

Foreigners' selling volume has not changed significantly. However, unlike yesterday's net buying of 115 billion KRW, they have consistently maintained a selling stance today.

Among the top 10 market capitalization stocks, Samsung Electronics, Kakao, and LG Chem, which showed notable gains, are all hovering around a 0% increase. SK Hynix at -0.91% and LG Energy Solution at -0.74%, which were flat, have turned downward.

By sector, the pharmaceutical index fell 1.65%, textiles and apparel 1.65%, and food and beverage 1.17%, showing relatively high declines. In contrast, the electric and gas sector maintained strength after the opening, rising 3.05%.

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