by Oh Yukyo
Published 17 Jan.2024 11:28(KST)
The KOSPI index retreated to the level of two months ago amid a selling offensive by foreigners.
As of 11:03 a.m. on the 17th, the KOSPI is trading at 2,455.84, down 41.75 points (-1.67%) from the previous session. The KOSPI index opened at 2,501.23, up 3.64 points (0.15%) from the previous trading day, but the 2,500 level quickly collapsed early in the session. Due to the selling pressure from foreigners, it fell to the 2,450 level, the lowest since November 14 last year (2,433.25).
Foreigners net sold 381.3 billion KRW. This is the largest net selling by foreigners since October 27 last year (379.1 billion KRW). Notably, since the full ban on short selling on November 6, foreigners had never net sold more than 300 billion KRW. Meanwhile, individuals and institutions are net buying 348.6 billion KRW and 9.2 billion KRW, respectively.
By sector, all sectors are declining except for Electric & Gas Utilities (up 0.12%) and Telecommunications (up 0.12%). Food & Beverages (-1.49%), Textiles & Apparel (-1.08%), Paper & Wood (-1.59%), Chemicals (-2.34%), Pharmaceuticals (-2%), Non-metallic Minerals (-1.2%), Steel & Metals (-2.22%), Machinery (-2.72%), Electrical & Electronics (-1.62%), Medical Precision (-1.84%), Transportation Equipment (-2.24%), Distribution (-1.29%), Construction (-1.39%), Transportation & Warehousing (-0.23%), Finance (-1.3%), Securities (-0.81%), Insurance (-0.94%), Services (-1.79%), and Manufacturing (-1.85%) are all on the decline.
Among the top market capitalization stocks, all are falling except for Woori Financial Group and Macquarie Infrastructure, which are holding steady. Samsung Electronics (-1.52%), Hyundai Motor (-2.04%), and POSCO Holdings (-2.86%) are showing declines exceeding 1%.
The U.S. stock market closed lower across the board on the previous day (local time). The market was negatively affected by news that Christopher Waller, a Federal Reserve (Fed) Board member, dismissed the possibility of an early interest rate cut. The domestic stock market is facing downward pressure as expectations for rate cuts diminish and geopolitical risks are highlighted following North Korean Supreme Leader Kim Jong-un’s hardline remarks that "South Korea is the main enemy."
Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "Considering recent exchange rate trends, North Korean risks appear to be increasing downward pressure on the stock market." He added, "While the 'North Korea' factor has often acted as a constant rather than a variable in the domestic stock market, recent expansions in global geopolitical instability are causing it to become a 'variable' again."
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