Foreign and Institutional Selling Pushes KOSPI Below 2210... KOSDAQ Down 1.56%

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The domestic stock market is showing a downward trend as foreign investors and institutions intensify their selling pressure.

As of 11:19 AM on the 20th, the KOSPI index was recorded at 2206.64, down 30.80 points (1.38%) from the previous trading day. The index opened at 2225.53, down 11.91 points (0.53%) from the previous day, and then the decline deepened, falling below the 2210 level. Individual investors net bought about 403.7 billion KRW, but foreigners and institutions dominated selling, offloading 282.2 billion KRW and 132.5 billion KRW respectively. The USD/KRW exchange rate started at 1435.4 KRW, up 9.2 KRW.

Among the top market capitalization stocks, all except Hyundai Motor (0.30%) were weak. Samsung SDI fell the most, down 4.13%. LG Chem dropped 4.05%, and SK Hynix, which faces concerns over third-quarter earnings, also fell nearly 4%. Kakao, which experienced service disruptions due to a data center fire, dropped more than 4% on the day.

By sector, securities (-3.52%), chemicals (-2.53%), textiles and apparel (-2.36%), and electrical and electronics (-1.88%) declined in order. Machinery (2.70%), medical precision instruments (1.62%), telecommunications (1.24%), and construction (0.32%) rose.

Seo Sang-young, head of the Media Content Division at Mirae Asset Securities, explained, "The strength of the US dollar affected foreign investor demand," adding, "The rise of the US 10-year Treasury yield to 4% was also a factor in the decline."

On the 19th (local time), the US stock market closed lower as Treasury yields rose despite corporate earnings announcements. The Dow Jones Industrial Average fell 99.99 points (0.33%) to 30,423.81, the large-cap S&P 500 dropped 24.82 points (0.67%) to 3695.16, and the tech-heavy Nasdaq fell 91.89 points (0.85%) to 10,680.51. The US 10-year Treasury yield surpassed 4%, reaching 4.13%, reflecting concerns that high inflation may persist. The 2-year Treasury yield exceeded 4.5%.

At the same time, the KOSDAQ index fell 10.76 points (1.56%) to 679.80 compared to the previous day. The index briefly recovered above 690 early in the session but fluctuated before deepening its losses. Individual investors net bought about 213.6 billion KRW, while foreigners and institutions net sold 118.2 billion KRW and 93.8 billion KRW respectively.

Most of the top market capitalization stocks were weak. L&F fell nearly 5%, and EcoPro BM dropped 3.95%. Celltrion Healthcare (-3.38%), Kakao Games (-3.27%), and Pearl Abyss (-3.26%) also declined.

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