Institutions 'Palja' Push KOSPI to Close Just Above 2700 Mark

by Kim Minyoung

Published 10 Jun.2024 16:13(KST)

The KOSPI index barely held the 2700 level amid institutional selling pressure.

On the morning of the 10th, the KOSPI and KOSDAQ started slightly lower, and the won-dollar exchange rate rose by more than 10 won. Various indices are displayed in the dealing room of Hana Bank's Euljiro headquarters in Seoul. Photo by Huh Younghan younghan@

On the 10th, the KOSPI closed at 2701.17, down 0.79% from the previous trading day. The index opened at 2698.71, down 0.88% from the previous day, and early in the session, the decline widened to over 1%, but it narrowed in the afternoon, defending the 2700 level.

In the securities market, institutions net sold 568 billion KRW. Meanwhile, individuals and foreigners net bought 554.2 billion KRW and 17.9 billion KRW, respectively.

Most of the top market capitalization stocks closed lower. Samsung Electronics fell 2.07% from the previous day, LG Energy Solution (-1.67%), KB Financial Group (-1.51%), and Samsung SDI (-1.50%) also declined. Naver (-2.68%) and Kakao (-2.60%) dropped more than 2%. On the other hand, Hyundai Motor and Kia rose 0.94% and 0.25%, respectively, compared to the previous day.

Ji-won Kim, a researcher at KB Securities, analyzed, "The exchange rate surged by more than 10 won, and foreign investors continued net selling in the cash and futures markets during the session, but over time, the net selling pressure in the cash market decreased, which helped reduce the index's decline. However, rather than the index or sectors, individual stocks related to the heatwave, Yanolja's U.S. listing, and the defense industry led the market."

On the same day, the KOSDAQ index closed at 864.71, down 0.17% from the previous trading day. The KOSDAQ opened at 862.21 and reduced its losses throughout the session, turning positive in the afternoon, but fell again at the end to close lower.

In the KOSDAQ market, foreigners led the decline by net selling 141.6 billion KRW. Individuals and institutions net bought 26.9 billion KRW and 98.2 billion KRW, respectively.

Rino Industrial (3.00%), HPSP (1.01%), and Classys (2.38%) closed higher, while EcoPro BM (-2.93%), EcoPro (-3.53%), and Alteogen (-5.95%) closed lower.