KOSPI Ends 0.4% Lower as Foreign and Institutional Investors Sell... Falls Below 2600 Mark

KOSDAQ Closes Up 0.1% at 912.20

The KOSPI index closed lower as foreigners and institutions recorded net selling dominance.

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On the 11th, the KOSPI index closed at 2,591.26, down 10.30 points (0.40%) from the previous trading day. This marked a decline for two consecutive trading days. The index opened higher by 9.69 points (0.37%) at 2,611.25 but then turned downward, falling to 2,589.94. Individuals were the sole net buyers with approximately KRW 184.6 billion in net purchases, while foreigners and institutions net sold about KRW 190.2 billion and KRW 7.6 billion, respectively. Institutions recorded net selling for eight consecutive trading days.

Among the top market capitalization stocks, POSCO Holdings (-3.51%), SK Hynix (-2.70%), POSCO Future M (-2.54%), LG Chem (-1.89%), LG Energy Solution (-1.62%), Naver (NAVER) (-1.33%), Samsung Electronics (-0.74%), and Samsung Biologics (-0.12%) declined in that order. Samsung SDI and Hyundai Motor rose by 1.77% and 1.11%, respectively.

By sector, paper & wood (-3.47%), steel & metals (-2.31%), medical precision (-2.19%), distribution (-1.08%), textiles & apparel (-1.07%), and electrical & electronics (-0.78%) showed weakness. Conversely, food & beverage (1.75%), transportation equipment (1.59%), insurance (1.02%), construction (0.88%), and securities (0.69%) sectors showed strength.

Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "The market started higher on relief from the U.S. July Consumer Price Index (CPI) coming in below expectations, but the KOSPI index turned downward as selling pressure emerged mainly in semiconductors and secondary batteries following news of a 15% decrease in domestic exports from the 1st to the 10th of this month and a trade deficit." He added, "The won-dollar exchange rate rose above 1,320 won as U.S. Treasury yields increased despite the slowdown in U.S. inflation, leading to a stronger dollar."

The U.S. July CPI rose 3.2% year-on-year, slightly below the market forecast of 3.3%. Although the increase was larger compared to June's 3.0%, which was the lowest in about two years, the overall trend showed a continued easing. Month-on-month, CPI rose 0.2%, meeting expectations. The core CPI, excluding the volatile energy and food sectors, increased 4.7% year-on-year, down from 4.8% the previous month, and rose 0.2% month-on-month.

According to the Korea Customs Service, exports from August 1 to 10 (preliminary customs clearance basis) amounted to USD 13.218 billion, down 15.3% compared to the same period last year. The trade balance recorded a deficit of USD 3.014 billion, an increase in deficit compared to the same period last month (USD 2.268 billion deficit).

The KOSDAQ index closed at 912.20, up 0.91 points (0.10%) from the previous trading day. Individuals were the sole net buyers with approximately KRW 29.8 billion in net purchases, while foreigners and institutions net sold about KRW 27.2 billion and KRW 10.1 billion, respectively.

Among the top market capitalization stocks, Pearl Abyss (2.48%), Celltrion Healthcare (2.12%), JYP Ent. (1.97%), Celltrion Pharm (1.32%), and SM Entertainment (0.15%) rose. POSCO DX (-6.97%), EcoPro BM (-4.15%), EcoPro (-2.49%), L&F (-2.41%), and HLB (-0.64%) declined. Although EcoPro and JYP Ent. were included in the Morgan Stanley Capital International (MSCI) Korea index, they closed lower. Inclusion in the index typically attracts inflows from global passive (index-tracking) funds. Hanwha Ocean also fell 0.11%, while Hanmi Semiconductor rose 2.24%. The actual index adjustment will be applied at the close of trading on the 31st of this month.

Meanwhile, the won-dollar exchange rate closed at 1,324.9 won, up 8.9 won. This is the highest level in over two months since May 31, when it recorded 1,327.2 won.

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