Foreigners and Institutions Sell... KOSPI and KOSDAQ Close Lower

Due to weakness in the U.S. stock market and increased uncertainty surrounding the U.S. presidential election results, investor sentiment weakened, leading to a decline in the domestic stock market on the 1st.

On the morning of the 1st, the KOSPI opened at 2,542.96, down 13.19 points (0.52%) from the previous day. A dealer is working in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul.
[Image source=Yonhap News]

On that day, the KOSPI closed at 2,542.36, down 13.79 points (0.54%) from the previous trading day. The index opened at 2,542.96, down 13.19 points (0.52%), and failed to rebound. Individual investors bought stocks worth 214.4 billion KRW alone, but foreigners and institutions sold stocks worth 39.4 billion KRW and 188.4 billion KRW, respectively.

Among the top market capitalization stocks, Shinhan Financial Group (5.26%), Kia (2.61%), Samsung Life Insurance (2.27%), Samsung C&T (2.05%), KB Financial Group (1.66%), POSCO Future M (1.56%), LG Chem (1.44%), Samsung SDI (1.38%), and LG Energy Solution (1.23%) rose. Conversely, SK Hynix (-2.20%), Samsung Electronics (-1.52%), Celltrion (-0.77%), and Hyundai Motor (-0.70%) declined.

By sector, insurance (1.70%), steel and metals (0.63%), financials (0.58%), and chemicals (0.53%) increased. Most sectors fell, including medical precision (-3.89%), construction (-1.81%), securities (-1.16%), non-metallic minerals (-0.83%), and paper and wood (-0.72%).

The KOSDAQ index recorded 729.05, down 14.01 points (1.89%) from the previous session. The index opened at 735.67, down 7.39 points (0.99%), and failed to rebound. Foreigners and institutions sold stocks worth 115.6 billion KRW and 52.0 billion KRW, respectively. Individual investors bought stocks worth 166.1 billion KRW alone.

Among the top market capitalization stocks, HPSP (7.64%), Samchundang Pharmaceutical (2.51%), and EcoPro (1.39%) rose. Stocks such as Ligakem Bio (-7.44%), EO Technics (-6.72%), Pharma Research (-5.54%), Alteogen (-5.31%), Lino Industrial (-5.09%), Classys (-4.93%), Peptron (-4.66%), ST Pharm (-4.59%), and Pearl Abyss (-4.52%) fell.

Ji-won Kim, a researcher at KB Securities, said, "On the 31st of last month (local time), the domestic stock market closed lower due to the decline in the U.S. stock market and caution ahead of major events. In particular, the KOSDAQ experienced a large drop." He added, "The reduced trading volume ahead of next week's U.S. presidential election and Federal Open Market Committee (FOMC) meeting reflects a wait-and-see sentiment." He also noted, "Volatility is expected to increase for the time being, so a conservative approach is necessary."

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