‘Panic market’ for a second day…Retail investors net buyers as foreigners sell 870 billion won
Summary
- South Korean stocks were said to be extending steep losses on concerns the U.S.-Iran war could be prolonged and the impact of a Strait of Hormuz closure.
- With the KOSPI and KOSDAQ indices plunging 9.85% and 11.70%, respectively, a circuit breaker on KOSPI 200 futures was also triggered.
- Foreign investors posted net selling of 870 billion won on the KOSPI, while retail investors were net buyers on the KOSPI but net sellers of 1.0206 trillion won on the KOSDAQ, showing divergent responses by investor group.
Forecast Trend Report by Period
South Korean stocks are extending their decline on concerns the U.S.-Iran war could drag on and on the impact of a potential closure of the Strait of Hormuz. Intraday, the market slid to as low as 5,059.45, returning to levels seen a month ago.
As of 2:10 p.m. on the 4th, the KOSPI was trading at 5,221.68, down 9.85% from the previous session. The KOSDAQ was at 1,003.99, down 11.73%.
At around 11:19 a.m., the KOSPI 200 futures index fell more than 8%, triggering a circuit breaker. The KOSPI later slid to 5,059.45 around 12:36 p.m., marking its lowest level since Feb. 5.
Foreign investors continued heavy selling, net selling about 870 billion won. The previous day, foreigners dumped 5.1731 trillion won worth of KOSPI shares. Institutions were net buyers of 457.1 billion won. Retail investors bought 221.4 billion won, showing some bargain-hunting.
Among the top 50 KOSPI names by market capitalization, all were falling except S-Oil. Samsung Electronics fell to 176,300 won (-9.64%) and SK hynix to 871,000 won (-7.24%). Other major large caps posted steep declines of 7%–15%, including Hyundai Motor (-14.62%), LG Energy Solution (-8.78%), Samsung Biologics (-8.45%), SK Square (-10.84%), Hanwha Aerospace (-7.12%), Kia (-12.34%), Doosan Enerbility (-14.55%) and HD Hyundai Heavy Industries (-11.53%).
By sector, semiconductors (-8.66%), holding companies (-11.34%) and finished vehicles (-13.75%) led the index’s drop.
As of 2:15 p.m., the KOSDAQ was down 11.70% from the previous session at 1,004.54. Retail investors dumped 1.0206 trillion won worth of shares. Foreigners, following the prior day, were net buyers on the KOSDAQ, purchasing 650 billion won. Institutions were net buyers of 367.1 billion won.
By KOSDAQ sector, pharmaceuticals and biotech (-12.3%), which has the largest market-cap weighting, led the decline. Semiconductors (-8.35%) and secondary-battery materials and equipment (-13.73%) were also weak.
Reporter Han-gyeol Seon always@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
