Foreign investors dumped a near 7 trillion won selling blitz in the Korea Exchange on the 27th in just one day. They posted net selling of more than 6.8 trillion won in the Korea Exchange. It is the largest-ever one-day net selling by foreigners in the history of Korea's stock market.
Despite heavy net selling by foreigners, the index fell only 1%. A surge of household funds into the stock market helped defend the index. Individuals net bought more than 6 trillion won, and financial investment, where exchange-traded funds (ETF) that attract retail money are counted, also showed a 1 trillion won buying advantage. Similar to the period right after the COVID-19 crisis when household funds flocked to stocks, a "second Donghak ant movement" appears to be taking shape.
The KOSPI closed at 6,244.13, down 63.14 points (1.00%) from the previous trading day. As a result, the KOSPI's streak of record highs for six consecutive sessions came to a halt after seven trading days.
Starting transactions at 6,197 points, the KOSPI plunged more than 2% in the morning before briefly turning slightly higher in the afternoon. But as foreign selling persisted, it eventually ended lower.
The U.S. stock market showed weakness led by tech the day before. Nvidia reported record-high results and expressed confidence in profit growth, but doubts grew over the sustainability of growth in the artificial intelligence (AI) industry. As risk appetite waned, global funds moved to safe assets, and U.S. Government Bonds yields fell.
Samsung Electronics and SK hynix, whose share prices had surged, underwent corrections. However, the pullback was not large. Samsung Electronics fell only 0.7%, and SK hynix dropped 3.5%.
Hyundai Motor also opened lower but instead jumped 10%. Hyundai Motor Group said it will invest 9 trillion won in Saemangeum, North Jeolla Province, to build an innovation growth hub focused on artificial intelligence (AI), robots, and energy. Defense and nuclear power-related stocks also rose.
The KOSDAQ started lower but inched up. The KOSDAQ closed at 1,192.78, up 4.63 points (0.39%).