Foreigners and Institutions Sell, KOSPI Falls... Impact of Sharp Drop in Secondary Battery Stocks

by Kim Daehyun

Published 31 Oct.2023 16:23(KST)

Updated 31 Oct.2023 16:26(KST)

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Below 2300 Level After 3 Trading Days

The KOSPI index closed lower due to simultaneous selling by foreigners and institutions. It fell below the 2300 level again for the first time in three trading days since the 26th.

[Image source=Yonhap News]

As of the 31st, the KOSPI index closed at 2277.99, down 32.56 points (-1.41%) from the previous session. The index opened at 2318.39, up 7.84 points (0.34%), but turned downward from the morning and widened its losses. Individuals bought stocks worth 341.5 billion KRW, but foreigners and institutions sold about 328.1 billion KRW and 69.7 billion KRW respectively. Due to concerns over weakening demand for electric vehicles, the stock price of U.S. electric vehicle maker Tesla plunged, and domestic secondary battery-related stocks could not avoid a decline at the close. China's manufacturing Purchasing Managers' Index (PMI) for this month also showed weakness, fueling concerns about an economic slowdown.

Among the top market capitalization stocks, Samsung SDI (-5.86%), POSCO Holdings (-4.97%), LG Energy Solution (-4.81%), SK Hynix (-2.35%), and Samsung Biologics (-1.66%) closed lower. On the other hand, KB Financial (0.78%), NAVER (0.70%), Samsung C&T (0.57%), and Celltrion (0.13%) rose.

By sector, insurance (1.30%), textiles and apparel (0.63%), transportation and warehousing (0.53%), food and beverages (0.21%), and telecommunications (0.14%) rose. Meanwhile, most sectors declined, including paper and wood (-6.10%), machinery (-4.14%), steel and metals (-4.11%), medical precision (-3.02%), transportation equipment (-2.62%), and electrical and electronics (-2.02%).

The KOSDAQ index closed at 736.10, down 21.02 points (-2.78%) from the previous trading day. The KOSDAQ index also opened higher at 758.65, up 1.53 points (0.20%), but quickly turned downward and widened losses until the close. Foreigners and institutions sold about 153.1 billion KRW and 116.0 billion KRW respectively. Individuals alone bought stocks worth 262.4 billion KRW, but it was not enough to offset the selling pressure.

Most of the top market capitalization stocks showed red. HPSP (-8.52%), L&F (-8.36%), EcoPro BM (-7.45%), and EcoPro (-6.34%) declined. On the other hand, Rainbow Robotics (1.66%), Classys (0.46%), and Alteogen (0.32%) rose.