The KOSPI index is experiencing a decline of over 2% due to significant selling by foreign and institutional investors. Although the initial drop exceeded 3%, it has since moderated as these investors sold more than 4 trillion won worth of shares, applying downward pressure on the index. The KOSDAQ is also showing weakness ahead of the September Federal Open Market Committee (FOMC) meeting, amid ongoing concerns about potential interest rate hikes.
As of 1:04 PM, the KOSPI is down 170.96 points (2.47%) at 6,738.95, according to the Korea Exchange.
The index opened at 6,692.61, down 217.30 points (3.14%) from the previous close, but has since reduced its losses, trading around the 6,700 mark after briefly dipping below 6,600.
In the securities market, individual investors have made net purchases of 3.1315 trillion won, while foreign and institutional investors have sold a combined total of 4.134 trillion won, with foreign investors selling 3.0502 trillion won and institutions 1.0838 trillion won. This indicates that individual investors are absorbing the selling pressure from foreign and institutional players.
Most of the top market capitalization stocks are declining, including Samsung Electronics (-2.89%), SK Hynix (-5.30%), SK Square (-6.34%), Samsung Electro-Mechanics (-4.64%), LG Energy Solution (-1.53%), Hyundai Motor (-3.01%), and Samsung Life Insurance (-2.52%). However, some stocks like Samsung Biologics (0.92%), KB Financial (1.01%), and Hanwha Aerospace (4.72%) are showing gains.
At the same time, the KOSDAQ index is trading at 813.48, down 7.16 points (0.87%) from the previous day.
In the KOSDAQ market, individual investors have made net purchases of 161.2 billion won, while foreign and institutional investors have sold 115.8 billion won and 41.5 billion won, respectively.
Among the top KOSDAQ stocks, Alteogen (-2.80%), EcoPro (-3.79%), EcoPro BM (-4.81%), Rainbow Robotics (-1.95%), IOTech (-3.82%), Rino Technology (-0.90%), and Simtech (-2.52%) are all declining, while JUSUNG Engineering (0.48%), Wonik IPS (2.45%), and Roboteam (0.46%) are rising.
Market analysts predict that this week’s domestic stock market will continue to experience volatility influenced by the August Consumer Price Index (CPI) results, the potential for interest rate hikes at the September FOMC meeting, the Bank of Japan's policy meeting, international oil prices, and foreign capital flows.
Han Ji-young, a researcher at Kiwoom Securities, stated, "We expect the KOSPI to range between 6,600 and 7,200 points this week. It is crucial to determine whether the interest rate hike at the September FOMC will be a one-time preemptive measure to curb inflation or the start of an additional tightening cycle."
She added, "The key players determining the market direction will be foreign investors, and their resumption of net buying during the September FOMC event will be essential for stabilizing the index above 7,000 points. Despite macro uncertainties, the semiconductor sector, driven by sustained demand for AI and a positive outlook for memory chips, is showing resilience, indicating a pattern of strength following weakness in the KOSPI."
* This article has been translated by AI.
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