KOSPI Fell on Foreigners And Institutional Sales

After the Lunar New Year holiday, foreigners who led the stock price increase turned to net selling, and the KOSPI index closed down after three trading days. There is an analysis that the surge in US Treasury yields was a burden. In addition to institutional selling, the stock price of large-cap stocks with the highest market cap also fell.

The KOSPI index closed the deal at 3133.73, down 0.93% on the 17th. Individuals net bought KRW 1.8107 trillion in the securities market, but were unable to sustain net selling by foreigners (481.5 billion won) and institutions (1.346.5 billion won).

After the beginning of the market, as foreigners expanded their futures selling, institutional investors’ programs were sold one after another. On this day, net sales of securities companies (financial investment) among institutions amounted to 84.9 billion won. When a foreigner sells futures, the institution’s program determines that the futures price is undervalued than the spot price, and automatically sells the overvalued spot.

It is analyzed that the supply and demand of foreigners was influenced by the US Treasury bond rate. The previous day, in the US stock market, the 10-year Treasury bond rate reached 1.3% per year, the highest in 12 months. This is due to the growing expectations for the economy to normalize as the February New York Manufacturing Index and Germany’s Economic Expectation Index rose sharply from the previous month and vaccination accelerated. Lee Kyung-min, a researcher at Daishin Securities, said, “It is judged that the widening increase in US Treasury bonds has stimulated the desire to realize profits.” .

Large stocks were also on the decline. Of the top 20 stocks by market cap, all stocks ended lower except for Samsung SDI (0.25%), LG Electronics (2.03%), SK Innovation (4.39%), and SK Telecom (0.80%). Samsung Electronics (KS:005930) (-2%), SK Hynix (-1.89%), LG Chem (KS:051910) (-2.15%), and Hyundai Motors (-1.62%) dropped by about 2%.

The KOSDAQ index closed higher. The market ended at 979.77, up 0.21%. Individuals and foreigners net bought 53.5 billion won and 66.7 billion won respectively in the KOSDAQ market, but the institution threw 66.5 billion won worth.

Logistics, packaging, and payment-related stocks continued to strengthen in response to Coupang’s expectations for listing on the New York Stock Exchange. Danal, the largest electronic payment agency (PG) market share in Coupang, Seoul Foods, which supplies food to Coupang, and KCTC, a logistics partner, recorded an upper limit. KTH, which supplies contents to Coupang’s online video service (OTT), also surged 12%.

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