Continued Net Selling by Foreign and Institutional Investors Drives KOSPI and KOSDAQ Down Over 1% [Morning Market Brief]

Ahead of the release of key U.S. economic indicators, investor sentiment has weakened, causing the market to continue its downward trend on the 16th. Both the KOSPI and Korea Securities Dealers Automated Quotations (KOSDAQ) are down by more than 1% as foreign and institutional investors persist in net selling.
As of 10:30 a.m., the KOSPI had dropped 1.22% from the previous trading day to 4,040.65. The index opened at 4,093.32, up 0.07% from the previous session, but quickly turned negative.
In the main stock market, foreign investors and institutions have net sold 203.2 billion KRW and 237.4 billion KRW, respectively, dragging the index down. Meanwhile, individual investors have net purchased 448 billion KRW, taking advantage of the lower prices.
Overnight, all three major indices on the New York Stock Exchange (NYSE) closed lower.
The Dow Jones Industrial Average (DJIA) and the S&P 500 Index (S&P 500) fell by 0.09% and 0.16%, respectively. The NASDAQ Composite Index also closed down 0.59%. Although all three indices started higher, heavy early selling quickly reversed the trend. The market is showing a wait-and-see attitude ahead of several key U.S. economic indicators to be released this week.
Caution continues in the domestic market as well. Samsung Electronics and SK hynix are trading at 104,100 KRW and 539,000 KRW, down 0.67% and 2.71%, respectively. LG Energy Solution, the third-largest stock by market capitalization, is also sharply down by over 4%, trading at 423,000 KRW. In contrast, Samsung Biologics (up 1.24%), Korea Electric Power Corporation (KEPCO) (up 0.80%), and Hana Financial Group (up 0.65%) are showing gains.
By sector, food, beverage & tobacco (up 0.83%), telecommunications (up 0.77%), and pharmaceuticals (up 0.51%) are relatively strong, while metals (down 4.70%), transportation equipment & parts (down 2.46%), and construction (down 2.22%) are all weak.
At the same time, the KOSDAQ is also down 1.49% from the previous session, standing at 924.81. After opening at 938.23, down 0.06% from the previous day, the decline has deepened.
In the KOSDAQ market, foreign investors and institutions are net selling 245.8 billion KRW and 65.7 billion KRW, respectively. Individual investors are the only net buyers, purchasing 340.6 billion KRW.

elikim@fnnews.com Kim Mi-hee Reporter