Foreigners and Institutions Sell Off, Domestic Stock Market Closes Lower... KOSPI Hits Lowest Level in 17 Months

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] On the 9th, the domestic stock market closed lower due to combined selling pressure from foreigners and institutions. The KOSPI recorded its lowest level in 17 months.

The KOSPI index closed at 2,610.61, down 33.70 points (1.27%) from the previous day. This is the lowest level in about 1 year and 5 months since it recorded 2,591.34 on November 30, 2020. The KOSPI closed lower for five consecutive trading days.

During the session, the index briefly fell below the 2,610 level, marking the lowest point since March 8. Foreigners and institutions sold shares during the session, while individual investors absorbed the selling, limiting further declines. Individuals net bought 339.5 billion KRW, while foreigners and institutions net sold 228.2 billion KRW and 143.5 billion KRW, respectively.

Among the top market capitalization stocks, Samsung SDI fell more than 4% due to selling by foreigners and institutions. This was followed by LG Chem (-3.08%), LG Energy Solution (-1.87%), Kia (-1.55%), Samsung Electronics (-0.60%), Hyundai Motor (-0.55%), and Kakao (-0.24%). Naver (1.10%) and Samsung Biologics (0.50%) rose. SK Hynix remained flat.

By sector, all sectors declined except for banks (1.36%) and telecommunications (0.63%). Paper & wood (-3.42%), textiles & apparel (-2.99%), construction (-2.79%), and non-metallic minerals (-2.60%) fell in order.

The KOSDAQ index also closed at 860.84, down 23.38 points (2.64%). Individuals net bought about 95.1 billion KRW, while foreigners and institutions net sold 17.6 billion KRW and 76.2 billion KRW, respectively.

All top market capitalization stocks on the KOSDAQ showed declines. In particular, the decline in secondary battery-related stocks was prominent. Cheonbo fell 4.16%, and L&F and EcoPro BM also dropped 2.83% and 2.10%, respectively. In addition, Pearl Abyss and Celltrion Pharm also fell more than 2%.

Park Kwang-nam, a researcher at Mirae Asset Securities, explained, "The U.S. stock market declined due to rising Treasury yields and inflation concerns. Japan's announcement of a ban on Russian crude oil imports highlighted concerns about economic slowdown, causing the Nikkei index to fall more than 2%, which widened the decline in the domestic stock market."

Lee Kyung-min, a researcher at Daishin Securities, also said, "The tightening burden of the U.S. Federal Reserve (Fed) still remains. The pressure from rising U.S. Treasury yields, continued uncertainty factors such as strengthened lockdown measures despite a decrease in new COVID-19 cases in Beijing and Shanghai, China, have dampened investor sentiment."

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