KOSPI Slides Into 6,700 Range as Foreign and Institutional Selling Deepens
South Korea’s benchmark stock index fell more than 1 percent in afternoon trading, with heavy selling by foreign and institutional investors outweighing purchases by individuals.
South Korean stocks retreated sharply on Thursday, with the benchmark KOSPI dropping into the 6,700 range as foreign and institutional investors sold heavily across most sectors.
The KOSPI stood at 6,723.36 as of 2:15 p.m., down 1.18 percent from the previous session. The index had opened slightly higher at 6,808.68 but quickly lost ground, falling as much as 2.26 percent to an intraday low of 6,650.29 around 12:57 p.m.
The reversal highlighted the pressure created by large-scale selling from overseas investors and domestic institutions. Foreign investors recorded net sales of 1.5781 trillion won, while institutions sold a net 1.4817 trillion won. Individual investors moved in the opposite direction, buying a net 2.3858 trillion won.
The decline was broad. Medical and precision instruments was the only sector to edge higher, gaining 0.07 percent. Construction fell 3.62 percent, machinery and equipment dropped 3.51 percent, and pharmaceuticals lost 3.36 percent. Securities, transportation equipment and parts, and financial shares also declined by more than 3 percent.
Most of the market’s largest companies traded lower. SK Square dropped 6.5 percent and Samsung Biologics fell 4.4 percent. Samsung C&T, Samsung Life Insurance and Hyundai Motor also posted notable losses. Samsung Electronics slipped 0.7 percent, while Samsung Electro-Mechanics declined 1 percent and KB Financial Group fell 2.3 percent.
LG Energy Solution was a major exception, rising 3.9 percent. SK hynix also managed a modest 0.1 percent gain.
The secondary KOSDAQ market proved more resilient. It was down 0.12 percent at 897.42 at the same point in the session after recovering most of an earlier decline that had reached 1.62 percent. Foreign and institutional investors were net buyers on the KOSDAQ, helping limit the index’s losses.
Performance within the smaller-company market was mixed. Pharmaceutical and general-services shares weakened, while machinery and equipment, publishing and media reproduction, nonmetallic minerals, and electrical and electronic equipment advanced. Semiconductor-related names including Jusung Engineering, Leeno Industrial and Wonik IPS recorded strong gains.
The contrast between the KOSPI and KOSDAQ showed that Thursday’s selling pressure was concentrated in many of the large companies that dominate South Korea’s main index. With foreign and institutional outflows running into the trillions of won, individual buying was not enough to prevent a broad afternoon decline.