Institutional Selling Spree... KOSPI and KOSDAQ Both Plummet

On the 6th, both the KOSPI and KOSDAQ closed lower. This is attributed to concerns over additional interest rate hikes in the U.S., with institutional investors net selling about 840 billion won in a single day.

On this day, the KOSPI closed at 2,556.29, down 22.71 points (0.88%) from the previous session. This marks a decline for three consecutive trading days. Foreigners and institutions net sold 166.5 billion won and 422.8 billion won respectively, driving the index down. Individuals net bought 550.8 billion won.

Among the top 10 groups by market capitalization in the KOSPI market, all stocks except Hyundai Motor (0.49%) and Kia (1.02%) closed lower. Samsung Electronics, which is set to announce its preliminary Q2 earnings the next day, closed at 71,600 won, down 0.56% from the previous trading day. Semiconductor stocks were weak, with SK Hynix closing down 2.49% at 113,800 won. Additionally, LG Chem (-1.78%) and POSCO Holdings (-2.23%) also closed lower.

Kim Seok-hwan, a researcher at Mirae Asset Securities, analyzed, "The hawkish minutes from the U.S. Federal Open Market Committee (FOMC) led to rising market interest rates and a stronger dollar, which acted as a burden, causing a general weakness in Asian stock markets and synchronization with the domestic market." He added, "There was also a wait-and-see stance ahead of Samsung Electronics' preliminary earnings announcement." Regarding the overall weakness in the construction sector on the day, he explained, "The decision to reconstruct due to GS Construction's defective construction has accumulated anxiety across the industry, dampening investment sentiment."

The KOSDAQ closed at 870.53, down 20.65 points (2.32%). Similarly, foreigners and institutions net sold 115 billion won and 350.1 billion won respectively. Individual investors net bought 458.6 billion won.

Among the top market capitalization groups in KOSDAQ, the so-called 'Ecopro brothers'?Ecopro BM (-2.31%) and Ecopro (-0.21%)?both closed lower. Celltrion Healthcare (-1.25%), L&F (-3.44%), and JYP Ent. (-2.43%) also ended the day weaker.

Meanwhile, in the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,300.9 won, up 2.3 won from the previous session.

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