[Closing Market] KOSPI Plunges 3.7% on Heavy Foreign, Institutional Selling
The domestic stock market turned downward in just one day, weighed down by the strong joint selling pressure of foreign and institutional investors. Failing to continue the rebound recorded on the previous day and undergoing another sharp correction, the KOSPI index retreated to the 5,550 level, and
The KOSPI stock market experienced a sharp decline on October 20, 2021, with the index falling 3.7% to 5,552.74 points due to heavy selling by foreign and institutional investors. This marked a significant drop from the previous day's closing at 5,493.24 points. The decline was attributed to global economic uncertainty, U.S. Treasury yield volatility, and declining investor sentiment in the semiconductor industry.
Foreign selling pressure was particularly strong, with foreigners net selling 533.3 billion won (approximately $401.55 million) in the KOSPI market. Among the top 10 KOSPI market capitalization stocks, Samsung Electronics and SK hynix, key semiconductor stocks, failed to provide support, contributing to the overall market decline. SK hynix, in particular, fell to below 1.2 million won during intraday trading for the first time in six months since the U.S. invasion of Iran in April 2021.
Secondary battery stocks, including LG Energy Solution and POSCO Holdings, also weakened due to concerns over reduced electric vehicle demand and caution ahead of Tesla's earnings. Large-cap pharmaceutical and biotechnology stocks, such as Samsung Biologics and Celltrion, showed mixed results amid foreign net selling. The KOSDAQ market followed a similar trend, with foreign selling intensifying and domestic institutions reducing their weight due to risk management concerns.
Despite some low-end buying by individuals, the joint selling pressure from foreigners and institutions ultimately led to the KOSPI and KOSDAQ indexes closing lower for the day.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
