“Just when it looked like foreign investors might be coming back”... KOSPI falls to the 5,600 level on selling by foreign and institutional investors [fn Morning Market Update]

[Financial News] The KOSPI fell to the 5,600 level amid selling by foreign and institutional investors. The decline is seen as reflecting heightened caution ahead of earnings announcements from major artificial intelligence (AI) companies.
As of 9:40 a.m. on the 20th, the KOSPI was trading at 5,621.66, down 146.35 points (2.54%) from the previous trading day. It opened at 5,733.57, down 34.44 points (0.60%) from the previous session, and has since extended its losses.
On the benchmark KOSPI market, institutions and foreign investors were net sellers of 303.8 billion won and 298.8 billion won, respectively. Individual investors and other corporations were net buyers of 495.4 billion won and 107.1 billion won, respectively.
Among the stocks with the largest market capitalizations, AI semiconductor-related shares including Samsung Electronics (-2.52%), SK hynix (-5.48%), SK Square (-5.90%) and Samsung Electro-Mechanics (-2.56%) were weak. Most other stocks were also falling, including LG Energy Solution (-3.01%), Samsung Biologics (-1.12%), Hyundai Motor (-3.37%), KB Financial Group (-0.25%) and Samsung Life Insurance (-3.48%).
All sectors were declining except food, beverages and tobacco (0.28%). The biggest losses were in transportation equipment and parts (-4.76%), machinery and equipment (-4.36%), metals (-4.30%), electrical and electronics (-3.87%) and chemicals (-3.75%), in that order.
Brokerage analysts say market caution has increased ahead of earnings announcements from major global semiconductor companies. Meta is scheduled to report earnings on the 22nd and Intel on the 23rd, Korea time. With concerns about funding for AI infrastructure companies having recently grown, the market is looking for indicators in those reports that could offset those concerns.
Han Ji-young, a researcher at Kiwoom Securities, said, “Today, downside factors such as caution over U.S. Big Tech earnings in the middle of the week are expected to cap the broader stock market’s upside.” She added, “The possibility of a tug-of-war between additional selling and new buying as investors assess various factors, including earnings announcements and changes in credit risk, is also a potential source of volatility.”
At the same time, the KOSDAQ was trading at 790.55, down 18.34 points (2.27%) from the previous session. It opened at 805.37, down 3.52 points (0.44%) from the previous trading day, then extended its losses and fell below the 800 mark.
On the KOSDAQ, foreign investors and institutions were selling shares worth 149.9 billion won and 92.1 billion won, respectively. Individual investors were buying shares worth 243.6 billion won.
[email protected] Lim Sang-hyeok Reporter