KOSPI Turns Pale Blue... Samsung Electronics Drops 2% Amid Institutional and Foreign Investor Exodus

KOSPI Falls Over 1% Amid Interest Rate Hike Concerns
Institutions Sell Stocks Worth Over 760 Billion Won

As concerns over interest rate hikes expanded, the KOSPI closed lower on the 7th. It was the fourth consecutive trading day with a decline. Samsung Electronics fell more than 2% as foreign and institutional investors sold shares following the Q2 earnings announcement.

[Image source=Yonhap News]

On the 7th, the KOSPI closed at 2526.71, down 1.16% (29.58 points) from the previous trading day. The KOSPI started the day down 0.3% compared to the previous day and at one point during the session recorded a decline of over 1.5%.

Net selling by institutions and foreigners poured in, resulting in a drop exceeding 1%. In particular, institutions sold stocks worth 760.9 billion KRW, pulling the index down. Foreigners sold stocks worth 40 billion KRW, while individuals were net buyers with 760.2 billion KRW.

Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, “The release of strong U.S. private employment data and service sector indices is expected to influence the Federal Reserve’s actions, which lowered the KOSPI and KOSDAQ indices,” adding, “Foreign selling was concentrated mainly in the electrical and electronics sector.” Lee Kyung-min, a researcher at Daishin Securities, said, “Ahead of tonight’s U.S. non-farm payroll data release, concerns related to monetary policy have likely increased,” and “The renewed tensions between the U.S. and China also likely increased selling pressure.”

Samsung Electronics fell 2.37% that day. Although Q2 earnings exceeded market expectations, foreign and institutional investors took profits. Institutions sold 3.16 million shares, and foreigners sold 1.22 million shares. Operating profit for Q2 was 600 billion KRW, down 96% year-on-year but above the market estimate of 280 billion KRW.

By sector, the pharmaceutical industry experienced the largest decline. Samsung Biologics fell more than 4%, and Celltrion (-2.6%), SK Bioscience (-3.9%), and Celltrion (-2.6%) also declined. Additionally, most of the top market cap stocks showed downward trends, including SK Hynix (-1.7%), LG Energy Solution (-0.53%), Samsung SDI (-0.85%), LG Chem (-1.2%), Hyundai Motor (-1.2%), Kia (-1.2%), and NAVER (-0.26%). Among major stocks, GS Construction fell 5.3%, continuing its decline for the fourth consecutive trading day. The stock was dragged down by news that a full reconstruction was decided for the apartment in Geomdan, Incheon, where a parking lot collapse accident occurred.

The KOSDAQ index closed at 867.27, down 0.37% (3.26 points) from the previous trading day. Although the index fell more than 1% during the session, the decline narrowed in the afternoon as foreign selling eased. Foreigners and institutions bought stocks worth 28.2 billion KRW and 120.3 billion KRW respectively in the KOSDAQ market, while individuals alone sold stocks worth 144.2 billion KRW.

Among the top market cap stocks, EcoPro BM (1.82%) and EcoPro (4.14%) rebounded from the previous day’s decline. However, other stocks such as Celltrion Healthcare (-2.7%), L&F (-0.2%), JYP Ent. (-1.29%), HLB (-0.3%), and Celltrion Pharm (-2.7%) closed lower.

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