KOSPI and KOSDAQ Continue Weakness in Afternoon... Foreigners and Institutions Keep 'Selling'

On the 6th, dealers were busy working in the dealing room of Hana Bank in Euljiro, Seoul, as the KOSPI index showed a downward trend due to the impact of the U.S. stock market crash. On that day, the KOSPI started at 2,650.89, down 26.68 points (1.00%) from the previous session. The KOSDAQ began at 888.54, down 11.52 points (1.28%). The won-dollar exchange rate started at 1,267.0 won, up 0.7 won, breaking through the 1,270 won level again. Photo by Moon Honam munonam@

[Asia Economy Reporter Hwang Yoon-joo] On the afternoon of the 6th, both the KOSPI and KOSDAQ indices are showing a decline of over 1%. The selling pressure from foreigners and institutions is increasing the downward movement of the indices since the market opened.

As of 2:15 PM, the KOSPI stands at 2642.38, down 35.19 points (-1.31%) from the previous day. The KOSPI opened at 2650.89, down 1.00%, and at one point in the afternoon dropped to 2635.97.

The indices are falling due to selling by foreigners and institutions. Foreigners and institutions are net sellers of 326.9 billion KRW and 330.1 billion KRW respectively. Individuals are net buyers of 645.5 billion KRW.

Foreigners are also selling 492.6 billion KRW in the futures market. By institution, financial investment (-155.4 billion KRW) and private equity funds (-105.0 billion KRW) are leading the selling. Pension funds (-32.7 billion KRW) and investment trusts (-30.8 billion KRW) are also contributing to the selling pressure.

[Image source=Yonhap News]

Among the top market capitalization stocks, the sharp decline of big tech stocks stands out. Kakao fell by 5.17%, and Naver by 4.08%, showing the highest rates of decline. Growth stocks tend to be disadvantaged during periods of interest rate hikes, and this appears to be influenced by the significant drop in IT stocks in the US market the previous day. On the 5th (local time), the Nasdaq index, focused on technology stocks, closed down 4.99% at 12,317.69.

By sector, the weakness of IT big tech growth stocks was notable. Apple and Google fell by 5.57% and 4.75%, respectively.

Following them, Samsung Biologics and Samsung Electronics also showed relatively notable declines of 2.21% and 2.06%, respectively.

By industry, only transportation and warehousing +0.97%, paper and wood +0.85%, and electric and gas utilities +0.11% showed gains. All other sectors declined.

Lee Kyung-min, a researcher at Daishin Securities, evaluated, "The KOSPI has seen a significant contraction in investor sentiment as concerns grow that the current tightening stance alone may not be sufficient to control inflation, combined with negative factors such as the Bank of England's (BOE) worries about economic slowdown and poor economic indicators."

On the 6th, dealers were busy working in the Hana Bank dealing room in Euljiro, Seoul, as the KOSPI index showed a downward trend due to the impact of the U.S. stock market crash. On that day, the KOSPI started at 2,650.89, down 26.68 points (1.00%) from the previous session. The KOSDAQ began at 888.54, down 11.52 points (1.28%). The won-dollar exchange rate started at 1,267.0 won, up 0.7 won, breaking through the 1,270 won level again. Photo by Moon Honam munonam@

As of 2:23 PM, the KOSDAQ stands at 884.78, down 15.28 points (-1.70%) from the previous day. It opened at 888.54, down 1.28%, and is extending its losses more than the KOSPI.

In the KOSDAQ, foreigners and institutions are net sellers of 64.2 billion KRW and 159.3 billion KRW respectively, pulling the index down. Only individuals are net buyers with 222.6 billion KRW. By institution, financial investment (-66.6 billion KRW) is leading the selling, along with private equity funds (-45.8 billion KRW), investment trusts (-25.0 billion KRW), and pension funds (-21.1 billion KRW) actively selling.

Among the top market cap stocks, only HLB rose by 1.19%, while the rest declined. L&F and Pearl Abyss showed the highest declines at -4.63% and -4.58%, respectively. EcoPro BM and L&K Industrial also fell relatively sharply by 2.81% and 2.72%, respectively.

Sector indices, as in the morning, show digital content and food/beverage/tobacco sectors falling by over 3% each.

Meanwhile, in the Seoul foreign exchange market, the won-dollar exchange rate opened at 1267.0 won, up 0.7 won, surged to 1275.80 won early in the session, but fell below 1270 won in the afternoon.

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